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Dec 31, 2022
Leggett & Platt Q4 2022 Earnings Report
Leggett & Platt's Q4 2022 earnings decreased due to weak demand, lower volume, and lower overhead absorption, partially offset by growth in certain businesses and metal margin expansion.
Key Takeaways
Leggett & Platt reported a decrease in fourth-quarter sales by 10% to $1.2 billion and a decrease in EPS to $0.39. The company's diverse portfolio and strong cash discipline helped deliver solid results despite weak demand in residential end markets. They anticipate 2023 to be a challenging year due to continued economic uncertainty.
4Q sales were $1.2 billion, a 10% decrease vs 4Q21
4Q EPS was $.39, a decrease of $.38 vs 4Q21
Organic sales were down 12%
Volume was down 12%, primarily from continued demand softness in residential end markets, partially offset by growth in our Automotive, Aerospace, and Hydraulic Cylinders businesses
Revenue by Segment
Forward Guidance
Leggett & Platt provided 2023 full year guidance with sales expected to be $4.8–$5.2 billion and EPS expected to be $1.50–$1.90.
Positive Outlook
- Acquisitions completed in 2022 expected to add ~3% to sales
- Operating cash flow $450–$500 million
- Capital expenditures $100 million
- Minimal acquisitions and share repurchases
- Volume at the midpoint expected to be down low single digits in Bedding Products Segment
Challenges Ahead
- Sales are expected to be $4.8–$5.2 billion, -7% to +1% versus 2022
- Volume at the midpoint expected to be down low single digits
- Raw material-related price decreases and currency impact combined expected to reduce sales mid-single digits
- Earnings at the midpoint primarily reflects lower metal margins in our Steel Rod business
Historical Earnings Impact
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Avg. Return Before/After Earnings
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