Engineered component maker
Leggett & Platt
became the latest big manufacturer to slash earnings guidance, warning of rising energy and material costs.
The Carthage, Mo., company cut its third-quarter earnings view to 30 to 35 cents a share on sales of $1.3 billion to $1.35 billion. Analysts surveyed by Reuters Research had been expecting a 43-cent profit on sales of $1.38 billion.
For the year, Leggett & Platt now expects to make around $1.40 a share, some 13% below the $1.60 analyst consensus. The warning follows on the heels of similar setbacks at packaging companies
"Factors contributing to the reduced earnings guidance, in approximate order of importance, include significantly higher costs for raw materials and energy, lower than anticipated sales volume, higher workers compensation costs, lower than anticipated LIFO income, deflation in some product lines and inventory obsolescence," the company said.
The company said it would respond by boosting prices and by seeking to close or sell 20 to 30 plants and warehouses.
Leggett was halted late Monday after dropping 50 cents to $22.80.