leggett & platt inc (LEG) Key Developments
Leggett & Platt Announces Executive Changes, Effective December 31, 2015
Aug 17 15
Leggett & Platt announced that David S. Haffner, the company's Chief Executive Officer and Board Chair, will retire from the company and the Board on December 31, 2015. Karl G. Glassman, the company's President and Chief Operating Officer, will assume the role of CEO on January 1, 2016. Karl Glassman succeeded Haffner as Chief Operating Officer in 2006 and as President in 2013. He has been with the company for over 33 years and has worked closely with Haffner for the past 16 years. Glassman joined the Board in 2002.
Leggett & Platt Increases Quarterly Dividend for the Third Quarter of 2015, Payable on October 15, 2015
Aug 12 15
Leggett & Platt's board of directors announced that they are raising the company's quarterly dividend by 1 cent per share, or 3.2%, to $0.32 per share for the third quarter. The dividend will be paid on October 15, 2015 to shareholders of record on September 15, 2015.
Miller Law LLC Announces Settlement of $151,250,000 for Purchasers of Certain Products Containing Polyurethane Foam
Aug 10 15
Miller Law LLC announced a settlement of $151,250,000 for purchasers of certain products containing polyurethane foam. A lawsuit known as In re Polyurethane Foam Antitrust Litigation, Case No. 10-MD-2196, is pending in the United States District Court for the Northern District of Ohio in Toledo. The Settlements have now been reached with the following Defendants: Carpenter Co., FFP Holdings LLC, Future Foam, Inc., FXI Holdings, Inc., Hickory Springs Manufacturing Company, Leggett & Platt, Incorporated, Mohawk Industries, Inc., Vitafoam (Vitafoam Products Canada Limited, and Vitafoam, Inc.), and Woodbridge (Woodbridge Foam Corporation, Woodbridge Sales & Engineering, Inc., and Woodbridge Foam Fabricating, Inc.). Together, these additional settling Defendants will be paying a total of $151,250,000 into the Settlement Fund. Several individuals and businesses brought claims on behalf of a Class of end-user 'indirect' purchasers of products that contain flexible polyurethane foam manufactured or supplied by the Defendants. These products include bedding (for example, mattresses, mattress toppers, or pillows), carpet underlay (also called carpet padding or carpet cushion), and upholstered furniture (for example, a sofa with foam cushions). Plaintiffs claim Defendants engaged in a conspiracy to: increase prices of flexible polyurethane foam and not compete for, or 'allocate,' customers. Plaintiffs contend Defendants violated numerous States' antitrust and consumer protection laws. Defendants deny these claims and deny they are liable to Plaintiffs in any way. Defendants in the nine Settlements will pay a total of $151,250,000. If the Plan of Allocation is approved by the Court, payments will be made to each Claimant from each Settlement pro rata based on the number of valid claims filed and the amounts paid for qualifying products. The Settlement Fund may also be used to pay for the cost to administer the Settlements, attorneys' fees, costs, and expenses, and awards to Class Representative Plaintiffs. Plaintiffs' counsel will request attorneys' fees not to exceed 30% of $151,250,000, plus reimbursement of costs and expenses. The Court will hold a hearing to decide whether to approve the nine proposed Settlements. The hearing will be on DECEMBER 15, 2015, at 10:00 a.m. at the Ashley U.S. Courthouse, 1716 Spielbusch Avenue, Toledo, Ohio 43604. The Court may change the date, time, or location of the hearing.
Leggett & Platt Eyes Acquisitions
Jul 31 15
Leggett & Platt, Incorporated (NYSE:LEG) intends to make acquisitions. Matt Flanigan, Enterprise Vice President and Chief Financial Officer of the company said: “We now anticipate a full-year EBIT margin between 11.3% and 11.6%, which would be our highest EBIT margin level since the year 2000. We again expect operating cash flow to exceed $350 million in 2015. Dividend should require about $170 million of cash and capital expenditures should approximate $120 million for the year. As has been our practice, after funding dividends and capital expenditures, remaining cash flow will be prioritized toward competitively advantaged acquisitions. Potential acquisitions must meet stringent, strategic, and financial criteria. Should no acquisitions come to fruition, and if excess cash flow is available, we have a standing authorization from the Board to repurchase up to 10 million shares each year.” Dave Haffner, Chairman and Chief Executive Officer of the company said: “We continue to see that as a growth opportunity through niche-type acquisitions. So we continue to look at opportunities to add to the facilities that we currently have.”
Leggett & Platt, Incorporated Reports Un-Audited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Revises Earnings Guidance for the Year 2015; Reports Impairment for the Second Quarter Ended June 30, 2015
Jul 30 15
Leggett & Platt, Incorporated reported un-audited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported net sales (from continuing operations) of $997.3 million compared to $956.1 million a year ago. Earnings before interest and taxes of $119.2 million compared to $102.2 million a year ago. Earnings before income taxes of $109.0 million compared to $93.2 million a year ago. Net earnings from continuing operations of $76.7 million or $0.53 per diluted share compared to $69.6 million or $0.48 per diluted share a year ago. Net earnings attributable to the company of $77.7 million or $0.54 per diluted share compared to net loss attributable to the company of $23.9 million or $0.17 per diluted share a year ago. Net cash from operating activity of $94.8 million compared to $103.1 million a year ago. Additions to PP&E of $29.6 million compared to $23.3 million a year ago. Net debt as on June 30, 2015 was $758 million compared to $803 million as on June 30, 2014. Adjusted EPS from continuing operations was $0.53 against $0.48 a year ago. Adjusted EBIT was $119 million against $102 million a year ago. Adjusted EBITDA (trailing twelve months) was $544 million against $473 million a year ago.
For the six months, the company reported net sales (from continuing operations) of $1,963.5 million compared to $1,831.6 million a year ago. Earnings before interest and taxes of $230.9 million compared to $188.0 million a year ago. Earnings before income taxes of $211.0 million compared to $170.0 million a year ago. Net earnings from continuing operations of $150.0 million or $1.03 per diluted share compared to $125.6 million or $0.86 per diluted share a year ago. Net earnings attributable to the company of $149.4 million or $1.04 per diluted share compared to $29.2 million or $0.20 per diluted share a year ago. Net cash from operating activity of $126.9 million compared to $83.4 million a year ago. Additions to PP&E of $51.3 million compared to $38.4 million a year ago.
The company is raising its EPS guidance, and now projects 2015 EPS of $2.00 to $2.15. Sales are anticipated to be $3.95 to $4.10 billion, growing 4% to 8%, and meeting or exceeding the company's 4% to 5% annual growth target. This sales forecast includes an expected 5% reduction in sales from raw material-related price deflation and currency translation impacts. Cash from operations should exceed $350 million in 2015. Capital expenditures are expected to be roughly $120 million. For the full year, the company expects similar results: record sales from continuing operations, the company high EBIT margin since 2000, and record EPS.
For the second quarter of 2015, the company announced impairment of $0.6 million against $108.5 a year ago.