Component manufacturer Leggett & Platt has reported record sales and earnings for 2015.
Full-year sales from continuing operations were $3.92 billion, a new continuing operations record and 4 percent increase over 2014 (during which sales increased 9 percent). Unit volume grew 6 percent and acquisitions added 3 percent to sales – these gains were partially offset however, by a 5 percent decline caused by raw material-related price deflation and currency impacts.
“Our markets improved during the year, and we achieved better-than-market growth in several lines of business.” said Karl Glassman, president and CEO. “Strong unit volume growth was partially offset by raw material-related deflation and currency (adjustments).”
Glassman said 2015 marked the first time earnings per share were above $2, and said the company achieved compound annual TSR (total shareholder return) of 20 percent per year over the last three
Sales in the company’s furniture and bedding components rose 5.1 percent to $2.04 billion. The company’s Fashion Bed Group and adjustable bed business climbed 14.5 percent to $539.8 million.
Diversified furniture manufacturer Leggett & Platt reported sales from continuing operations were $997 million, a second quarter record and an increase versus Q2 2014 (during which sales increased 9%).
Offset by a 5 percent decline from raw material price deflation and currency issues, in the fourth quarter, sales fell 1 percent to $944.6 million. Despite the drop, the company increased volume by 3 percent and added 1 percent in sales from acquisitions.
The company is projecting earnings per share of $2.30 to $2.50 for 2016. Sales are projected to be at $3.9 billion to $4.1 billion.
"Looking forward, we expect strong unit volume growth in 2016 across a number of our businesses. A good portion of the growth is from new product introductions and the resultant market share gains. In addition, broad economic factors – including consumer confidence, housing turnover, and reduced energy prices – are providing favorable trends that should result in end market growth. With this anticipated growth, we expect that in 2016 we will again achieve strong continuing operations' sales, margin, and EPS."
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