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Leggett & Platt Q4 2024 Performance Review

Leggett & Platt Inc. (NYSE: LEG) has reported its financial results for the fourth quarter (Q4) and the full year ending December 31, 2024. This year marks a challenging period for the company, facing a 7% decline in annual sales compared to 2023. The fourth-quarter revenue amounted to $1.1 billion, representing a 5% decrease from the same quarter the previous year.

Financial Highlights

In Q4 2024, the company recorded earnings per share (EPS) of $0.10, showing a noticeable turnaround from the EPS loss of $2.18 in Q4 2023. When applying adjustments, the adjusted EPS for Q4 stood at $0.21, down from $0.26 in the prior year. This reflects the company's struggles in the automotive and hydraulic cylinders markets, which were particularly weak during the latter part of the year.

For the full year, Leggett & Platt’s sales totaled $4.4 billion, down from $4.7 billion in 2023. The adjusted EPS decreased to $1.05, down from $1.39 in 2023, primarily due to ongoing challenges in demand within the residential markets and increased competition.

Restructuring Efforts

CEO Karl Glassman noted that despite these challenges, substantial progress was made in executing the company's restructuring plan. The restructuring activities have yielded an EBIT benefit of $22 million, contributing to cash generation of $20 million from real estate sales, while also reducing the company's debt by $126 million during the year. Glassman mentioned, “While we encountered setbacks in certain segments, our strategic initiatives are beginning to yield tangible results.”

In light of these results and restructuring efforts, Leggett announced Sam Smith's promotion to President of the Specialized Products segment. His experience and leadership in operational efficiency projects since 2024 have been significant. Smith will also continue to oversee the Furniture, Flooring, and Textile Products segment.

Future Outlook

Looking ahead to 2025, Leggett & Platt's guidance estimates sales anticipated between $4.0 billion and $4.3 billion, with EPS forecasts ranging from $0.83 to $1.24. Operationally, the company aims to mitigate weakness in the market and enhance both efficiency and profitability. Efforts will focus on positioning the company for long-term growth, a critical objective given the ongoing economic uncertainty.

Segment Performance

Examining performance across segments, the Bedding Products segment faced a significant sales decline of 11%, driven by soft demand in the U.S. and European markets. In contrast, the Specialized Products segment saw a 3% dip in trade sales but witnessed growth in aerospace.

In summary, Leggett & Platt concludes a challenging year with strategic changes and restructuring, setting the stage for potential recovery and growth. The company's commitment to improving operational efficiency and exploring long-term growth opportunities will be paramount in the upcoming year.