Leggett & Platt reports increased earnings per share in 2015

Leggett & Platt announced record full-year adjusted earnings per share (EPS) from continuing operations of $2.34 for 2015, a 31 percent improvement over 2014 adjusted EPS of $1.78. The company said the EPS improvement is largely the result of higher unit volume and pricing discipline.
  
Full-year sales from continuing operations were $3.92 billion, a new continuing operations record and 4 percent increase versus 2014 (during which sales increased 9 percent). Unit volume grew 6 percent and acquisitions added 3 percent to sales; these gains were partially offset by a 5 percent decline caused by raw material-related price deflation and currency impacts.
  
Fourth quarter adjusted EPS from continuing operations was $.64, a 56 percent increase compared to $.41 in the prior year. The company said the increase reflects pricing discipline, unit volume growth, higher LIFO benefit, and lower stock compensation expense.
    
Fourth quarter 2015 sales from continuing operations declined 1 percent versus the prior year. Unit volume grew 3 percent and acquisitions added 1 percent to sales; these gains were offset by a 5 percent decline caused by raw material-related price deflation and currency impacts.
  
President and CEO Karl G. Glassman commented, "During 2015, continuing operations posted 4 percent sales growth, meeting our 4-5 percent annual growth target. Strong unit volume growth was partially offset by raw material-related deflation and currency. Continuing operations' adjusted EBIT margin was 12.9 percent, the highest since 1999; margin improved by 270 basis points versus the prior year.”
  
As for an outlook, Glassman said: "Looking forward, we expect strong unit volume growth in 2016 across a number of our businesses. A good portion of the growth is from new product introductions and the resultant market share gains. In addition, broad economic factors – including consumer confidence, housing turnover, and reduced energy prices – are providing favorable trends that should result in end market growth. With this anticipated growth, we expect that in 2016 we will again achieve strong continuing operations' sales, margin, and EPS."