CARTHAGE, MO - Leggett & Platt, a diversified manufacturer of store fixtures, furniture supplies and other products, lowered its forecast for sales growth this year from between 2% and 6% to between 1% and 4%, reflecting softer than anticipated sales in some of its key markets.
Leggett & Platt's revised full-year sales guidance is now $3.75 to3.85 billion. Cash from from operations should exceed $350 million for the full year and capital expenditures are expected to be approximately $85 million; the company said. It expects to dole out approximately $125 million in dividend payments this year.
In addition to its capital expenditure budget, Leggett & Platt said it has "purposely retained spare production capacity" to take advantage of a rebound in unit sales volumes.
During the second quarter, Leggett & Platt posted sales from continuing operations of $959 million, a 3% increase versus the prior year. During the second quarter, Leggett & Platt's residential furnishings unit sales increased $14 million or 3% and commercial fixturing and components sales increased $13 million or 11%.
CEO David Haffner said, "Since 2007, our primary long-term financial goal has been to consistently rank in the top third of the S&P 500 companies for Total Shareholder Return (TSR) as measured over rolling three-year periods. For the three -ear period that began Jan. 1, 2011, we have so far generated annual average TSR of 19%, which currently places us in the top third of the S&P 500 companies."
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