#United States #earnings report #Leggett & Platt #Carthage #2025 results

Leggett & Platt Reports First Quarter 2025 Results

Leggett & Platt Incorporated, a well-known diversified manufacturer, has published its first quarter earnings for 2025, highlighting both challenges and resilience amid a fluctuating economic backdrop. The company recorded sales of $1.0 billion, a notable decrease of 7% compared to the same quarter in the previous year. Despite these challenges, the results indicate a positive trajectory in terms of operational efficiency and profitability management.

Key Financial Highlights

• - Sales: 1Q sales stood at $1.0 billion, representing a 7% decline from the same period in 2024. The decrease was attributed primarily to weakened demand across residential market segments and ongoing restructuring efforts.
• - Earnings Per Share (EPS): The EPS was reported at $0.22, a slight decrease from $0.23 during the first quarter of 2024. Adjusted EPS improved to $0.24, marking a $0.01 increase year-over-year.
• - Operating Cash Flow: The company realized an operating cash flow of $7 million, which is a significant increase of $13 million from the previous year.

Leadership Insights

Karl Glassman, President and CEO of Leggett & Platt, expressed satisfaction with the first quarter earnings, stating, “Our earnings improvement is a testament to the successful execution of our restructuring plan and operational improvements.” He further noted that while navigating a complex tariff environment, the company is strategically positioned for better demand for domestically produced products.

Strategic Restructuring Plan

The firm has undertaken a comprehensive restructuring initiative aimed at enhancing operational efficiencies and managing costs. This includes divesting non-core businesses, such as the recent sale of a small U.S. machinery business and an impending agreement to sell the Aerospace business segment. Glassman reiterated, “We are committed to our strategic priorities, focusing on strengthening our balance sheet, enhancing profitability, and positioning the organization for sustained growth.”

Outlook for 2025

For 2025, the company has set its guidance for sales between $4.0 billion and $4.3 billion alongside an EPS forecast of $0.85 to $1.26. Despite the anticipated challenges in volume, particularly within the domestic bedding industry, Glassman remains optimistic. He highlighted that potential tariff benefits on materials might offset the lower volume from overseas competition, asserting, “Our business is resilient. With our dedicated workforce, we are confident in our strategic execution.”

Segment Performance

In analyzing the business segments, Leggett & Platt noted that:

• - Bedding Products experienced a trade sales decline of 13%, reflecting overall softness in the bedding market.
• - Specialized Products saw a decrease in trade sales by 5%, with some positive growth driven by aerospace segments.
• - Furniture, Flooring, and Textile Products had a marginal decrease of 1% in trade sales, though volume in textiles showed a slight uptrend.

Future Steps

Leggett & Platt's management will continue to focus on sustainable improvements in operational efficiencies post-restructuring. Plans include maintaining financial discipline, investing in core competencies, and enhancing product offerings. The company is committed to managing macroeconomic impacts and responding proactively to market changes.

The announcement has sparked positive discussion among stakeholders, suggesting that the company could navigate through its current challenges while pursuing its strategic goals. Leggett & Platt’s planned conference call on April 29, 2025, is set to provide additional insights into their financial strategies and future operational plans.

For more detailed financial information and updates, stakeholders and interested parties can access the company’s official website at www.leggett.com.