CARTHAGE, MO -- Furniture supplies maker Leggett & Platt plans to close manufacturing facilities as part of its restructuring efforts.
Leggett & Platt President and CEO David Haffner said the diversified manufacturer will shut down plants when the company announced it would take a fourth quarter pre-tax charge of approximately $36 million, "primarily restructuring-related."
"Two months ago we disclosed our belief that the U.S. economy will face headwinds for longer than we previously expected," Haffner said. "We also mentioned that we were turning our focus to actions that would yield improved ongoing profitability; that focus, and our view of continuing demand weakness in certain markets, led to the current restructuring activity and recognition of impairments. We have decided to close some production facilities, trim our cost structure, and reduce overhead."
The company, which has production including store fixtures and furniture supplies, has not announced which plants will be shuttered, but will look to reduce excess capacity through consolidation.
In 2010 Leggett & Platt divested seven operations, selling them off for $433 million. The furniture industry supplier decreased in sized from $5 billion in sales at its peak to $3 billion in 2010. It will announce its 2011 earnings February 3.
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