CARTHAGE, Mo. — Leggett & Platt reported 3% dip in third quarter sales, despite year-over-year sales growth in several sectors including home furniture and fabric converting. Still, the company reported a quarterly record third-quarter earnings per share of 77 cents, up 3 cents per share over the third quarter in 2019.
For the quarter ended Sept.30, its bedding products trade sales were down 2%, partly due to exiting the Fashion Bed business, and its furniture, flooring and textile products trade sales were up 1%. The company noted that strong demand in fabric converting, geo components and home furniture “was more than offset by weak demand in work furniture and flooring products’ hospitality business.”
Third quarter sales were $1.208 billion, down 3% vs. the year-ago period. “Following steep declines in second quarter, we returned to year-over-year sales growth this past quarter in ECS, U.S. and European Spring, Home Furniture, Fabric Converting and Geo Components,” said Chairman and CEO Karl Glassman.
L&P’s earnings before interest and taxes (EBIT) was $147 million, up $3 million or 2% year-over-year, and adjusted EBIT was $153 million, a $5 million or 3% increase.
“We generated quarterly record EBIT, EBITDA and EPS in third quarter. We also generated quarterly record cash flow from operations of $261 million, driven by a significant reduction in working capital,” said Glassman.
He added that the company continues to be well-positioned to capitalize on “long-term opportunities in our various end markets.”
Leggett & Platt ended the quarter with $1.4 billion of liquidity, including $245 million of cash on hand. The company’s total debt stands at $2 billion, with no significant maturities until August 2022.
In the earnings statement, the company also announced that the board of directors declared a fourth quarter dividend of 40 cents per share to be paid to shareholders of record as of Dec. 15.