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Jun 30, 2024
Leggett & Platt Q2 2024 Earnings Report
Leggett & Platt reported a decrease in sales and a net loss, impacted by a goodwill impairment charge and restructuring activities.
Key Takeaways
Leggett & Platt's second quarter sales decreased by 8% to $1.1 billion. The company reported a net loss primarily due to a significant non-cash goodwill impairment charge. Adjusted EPS was $.29, a decrease compared to the previous year. The company is lowering its full year sales guidance and narrowing its adjusted EPS guidance, reflecting weaker demand and other factors.
Second quarter sales were $1.1 billion, an 8% decrease versus the same quarter last year.
EPS was a loss of ($4.39), primarily due to a non-cash goodwill impairment charge.
Adjusted EPS was $.29, a $.09 decrease versus the same quarter last year.
The company is conducting a strategic review of its diverse portfolio.
Revenue by Segment
Forward Guidance
Leggett & Platt lowered its full year 2024 sales guidance to $4.3–$4.5 billion and narrowed its adjusted EPS guidance to $1.10–$1.25.
Positive Outlook
- Restructuring plan progressing ahead of schedule.
- Operational efficiency improvements.
- Pricing discipline.
- Real estate sales anticipated to be realized sooner than initially expected.
- Lower amortization resulting from the 2023 long-lived asset impairment.
Challenges Ahead
- Lower expected volume in Bedding Products and Furniture, Flooring & Textile Products segments.
- Pricing responses related to global steel cost differentials.
- Modest metal margin compression.
- Increased inventory write-downs/reserves realized in the second quarter 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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