This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Leggett & Platt, Incorporated's CEO Discusses Q4 2011 Results - Earnings Call Transcript

Across the company as a whole, unit volume increased slightly. Demand improved in certain of our markets during 2011 with automotive and office furniture leading the way. In contrast, stagnant demand negatively impacted our major residential markets. Many consumers continued to postpone spending on larger ticket items such as bedding and furniture in the phase of ongoing weak economy.

On the third quarter earnings call, we stated that our view of continuing demand weakness in certain of our markets and our plan to initiate actions that would yield improved ongoing profitability. In late December, we announced further restructuring which included the closure of 4 production facilities along with other cost reductions. These activities resulted in a $0.16 per share, predominantly noncash charge to earnings during the fourth quarter. The restructuring-related activities that we initiated during 2011 in total should benefit 2012 earnings per share by approximately $0.07 to $0.10.

We were very pleased to report in late December that we were acquiring Western Pneumatic Tube, a leading provider to the aerospace industry of integral components for critical aircraft systems. Our strategic long-term 4% to 5% annual growth objective envisions periodic acquisitions of companies exactly like Western. High-quality businesses with secure leading positions in growing, profitable, attractive markets and that makes sense to be part of Leggett & Platt. The acquisition was completed on January 12 and is expected to be slightly accretive to EPS in 2012.

Operating cash for the fourth quarter was $127 million, bringing the full year 2011 operating cash to $329 million. With concerns about weak markets, our operating folks continue to closely monitor the working capital levels. We ended the year with working capital at 11.8% of annualized sales. Now current liabilities include approximately $30 million associated with an interest rate swap that we entered in 2010.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs