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4Q pre-tax charge of approx. $36 million; primarily restructuring-related and predominantly non-cash
Expectation for full year underlying operating results is unchanged
Diversified manufacturer Leggett & Platt anticipates a fourth quarter, largely non-cash, pre-tax charge of approximately
$36 million. The expense primarily reflects restructuring-related activity including the closure of additional manufacturing facilities. Production capacity should decline only slightly, due to the relocation of equipment to other facilities.
Apart from this special charge, the company's full year EPS expectation has not changed from the
$1.15 - 1.20 guidance issued in October. The special charge is expected to reduce after-tax earnings by roughly
$.16 per share; as a result, full year EPS is expected to be in the range of
$.99 - 1.04.
Restructuring-related activities identified to-date (including the plant consolidations discussed in October) are expected to benefit 2012 EPS by approximately
$.07 - .10.
President and CEO
David S. Haffner commented, "Two months ago we disclosed our belief that the U.S. economy will face headwinds for longer than we previously expected. We also mentioned that we were turning our focus to actions that would yield improved ongoing profitability; that focus, and our view of continuing demand weakness in certain markets, led to the current restructuring activity and recognition of impairments. We have decided to close some production facilities, trim our cost structure, and reduce overhead. Importantly, full year underlying operational results appear to be in line with the expectations we shared in our October earnings release."
Fourth quarter results will be released after the market closes on
Monday, February 6, 2012, with a conference call the next morning.
FOR MORE INFORMATION: Visit Leggett's website at
COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a diversified manufacturer (and member of the S&P 500) that conceives, designs and produces a variety of engineered components and products that can be found in most homes, offices, and automobiles. The 128-year-old firm is comprised of 19 business units, 18,000 employee-partners, and 130 manufacturing facilities located in 18 countries.