Leggett sees earnings decline in third quarter

Diluted earnings per share were 37 cents, down from 45 cents in third-quarter 2006, which at the time included 2 cents per share from net nonrecurring items and the company’s discontinued prime foam operation, according to the Oct. 17 earnings report.

Sales for the quarter were $1.33 billion, a 3 percent decline from last year’s third-quarter sales of $1.37 billion. Same location sales fell 5 percent but were partially offset by a 2 percent increase in revenue from acquisitions.

During the quarter, Leggett repurchased 5 million shares of stock at an average price of just below $21 each, bringing the 2007 total purchase to 9.6 million shares. The company’s board has authorized the purchase of up to 10 million shares for the year.

Also in the third quarter, Leggett declared an 18-cent dividend, paid on Oct. 15.

“As anticipated, continued demand weakness in the U.S. home-related, retail and aluminum markets that we serve led to lower sales and earnings,” Leggett President and CEO David S. Haffner said in a news release. “We expect this market softness to continue through the fourth quarter.”

Haffner added that the company plans to unveil an in-depth review of its business portfolio next month that is “broader in scope, more strategic in nature and more long-term oriented than any of the company’s previous activities.”

Earnings for 2007 are expected to be between $1.29 and $1.37 per share, according to the release. For the fourth quarter, per-share earnings are predicted to be between 18 cents and 26 cents.

Company shares (NYSE: LEG) closed Monday at $18.96, compared to a 52-week range of $18.31 to $24.73.