Leggett’s profit increases after 1Q divestiture

The Carthage-based diversified manufacturer saw earnings of 41 cents per diluted share for the quarter, including the 7-cent benefit from Leggett’s discontinued Prime Foam operations that netted a pre-tax gain of $24 million. First-quarter earnings were up from 33 cents a year before, when figures included 3 cents-per-share from Prime Foam income. Year-ago earnings also included 4 cents-per-share related to a long-term restructuring ongoing at the company since 2005.

The absence of Prime Foam income is expected to affect Leggett’s operating earnings by 1 cent-per-share each quarter for the remainder of the year, according to a company news release.

Sales for the quarter were $1.29 billion from continuing operations, a 2.2 percent decrease from a year before. Same location sales fell 3.7 percent.

“Volume was weak in most of the U.S. home-related, aluminum and retail markets that we serve,” said CEO and President David Haffner in the release. “However, we saw strength in certain international markets, in machinery and in a portion of our commercial vehicle products.”

About 1.5 percent of the revenue increase was due to acquisitions, according to the release. Leggett added a designer and assembler of docking stations for electronic equipment inside vehicles, and a manufacturer of coated wire products, including dishwasher racks. Those new units are expected to add $80 million in annual sales.

Also in the first quarter, Leggett purchased 1.7 million shares and issued 1.1 million shares through benefit plans, in addition to the 6.2 million shares it purchased in 2006. Outstanding shares have fallen to 177.4 million, from 182.6 million at the beginning of last year.

The company expects to take in $700 million in 2007 and plans to spend about $200 million on dividends and maintenance capital, with the remainder available for investment in internal growth and acquisitions. Officials project 2 percent sales growth for 2007, with earnings per-share coming in between $1.60 and $1.80.

Company shares (NYSE: LEG) closed Monday at $23.21, compared to a 52-week range of $21.93 to $27.04.