Leggett & Platt Profit Falls 72 Percent in Fourth Quarter
February 7, 2012,
CARTHAGE, Mo.-Despite a healthy sales increase, fourth-quarter net income for Leggett & Platt took a 72 percent dive to $8.7 million.
Net sales for the quarter, which ended on Dec. 31, rose 7 percent to $854.1 million. However, as President and CEO David Haffner explained, the sales pickup occurred mostly because of inflation and currency rates, neither of which generated much profit for Leggett & Platt. In addition, restructuring costs and weak demand for some products has hampered the company's business, Haffner added.
For the full fiscal year, Leggett & Platt's net income dropped 13 percent to $153.3 million, while net sales increased 8 percent to $3.6 billion.
Regarding the new fiscal year, Haffner said Leggett & Platt will continue its tight watch over costs, to exit unprofitable businesses and focus on other elements of its strategic goals. "We remain well poised for earnings growth when the economy expands," he said.