Leggett’s sales rise; analysts downgrade stock

The record was due partly to a 1 percent increase in same-location sales and to acquisitions, which contributed 6 percent of the sales increase. Gains were offset slightly by unit volume declines and costs from the company’s restructuring program, which is nearly complete.

Quarterly per-share earnings, announced Oct. 19, were 45 cents, up from 28 cents in third-quarter 2005.

“Externally, the North American automotive and bedding markets continue to be weak and have softened more than we previously anticipated,” said President and CEO David Haffner in a news release. “On the other hand, our residential furniture hardware and foam businesses have continued to perform well.”

During the third quarter, Leggett announced growth-related staff additions in business development and at the corporate level. The company also purchased 2.1 million shares of its stock, a move partially offset by the issuance of 300,000 shares through benefit plans. Year-to-date, the company has purchased 4.8 million shares.

Since Leggett’s earnings release, two stock analysts have downgraded the company’s shares. UBS issued a downgrade from “Buy” to “Neutral,” and BB&T Capital Markets issued a downgrade from “Buy” to “Hold.”

Company shares (NYSE: LEG) closed Wednesday at $22.94, compared to a 52-week range of $18.97 to $27.04.