Leggett & Platt said fourth-quarter sales fell 5% to $1.06 billion, but the company recorded net income of $14.2 million, or 10 cents per share, as it began to see the bottom-line impact of a restructuring effort that began early last year.
The fourth-quarter profit reversed a net loss of $297.3 million or $2.18 per share in the fourth quarter of 2023.
The bedding products segment, the company’s largest business unit, had sales of $420.2 million — a 6% decline from the same period in 2023 — while the furniture, flooring and textile products segment saw sales fall 4% to $332.5 million. Sales in the specialized products segment were down 5% to $303.7 million.
“Our 2024 sales and earnings were impacted by continued weak demand in residential end markets and softening in Automotive and Hydraulic Cylinders in the second half of the year. However, we are encouraged that our strategic initiatives are delivering results,” said Karl Glassman, president and CEO. “We expect continued economic uncertainty in 2025, but we continue to focus on strengthening our balance sheet, improving operational efficiency and margins, and positioning the company for long-term growth.”
Glassman said the restructuring effort “consistently met or exceeded our expectations” and is on track to boost EBIT — earnings before interest and taxes — by $60 million to $70 million annually when it is fully implemented late this year. Last fall, the company projected an annual EBIT boost of $50 million to $60 million.
He said the restructuring added $12 million to EBIT in the fourth quarter and $22 million for the 2024 calendar year.
Companywide sales for 2024 totaled $4.38 billion, down 7% from $4.73 billion in 2023.
Due largely to restructuring and impairment charges and other one-time costs, the company recorded a full-year net loss of $511.5 million or $3.73 per share. That compares with a 2023 net loss of $136.8 million or $1 per share.
Adjusted earnings, which exclude the one-time costs, were $1.05 per share in 2024, down from $1.39 in 2023.
The bedding products segment had sales of $1.75 billion in 2024, down 11% from 2023, while the furniture, flooring and textiles products segment had 2024 sales of $1.39 billion, down 6% from 2023.
The specialized products segment had 2024 sales of $1.24 billion, down 3% from 2023.
