Diversified wire product manufacturer Leggett & Platt reported first quarter sales of $1.029 billion, an increase of 7 percent versus first quarter 2017. Raw material-related price increases and currency impact added 5 percent and volume grew 1 percent. Acquisitions also contributed 2 percent to sales growth but were partially offset by divestitures.
First quarter earnings were $.57 per share, down 8 percent versus the $.62 per share earned in first quarter 2017, primarily from higher raw material costs.
President and CEO Karl G. Glassman commented, "Inflation continues to be a significant margin headwind. Steel costs increased in late 2017 and have further accelerated this year. We are implementing price increases (with our normal 90-day lag) in the majority of our steel-consuming businesses to recover the higher costs. In our Home Furniture business, where we have not yet been able to fully recover inflation because of offshore competition, we are also reducing our cost structure and moving additional production to our Chinese operations to take advantage of lower input costs.”
For 2018, the company continues to expect that sales growth will lead to improved earnings. Full-year sales are now expected to be $4.3–$4.4 billion, an increase of 9–12 percent versus 2017, and $100 million above the prior range of $4.2–$4.3 billion due to continued steel inflation. Volume growth is expected to be in the mid-single digits, from strength in Automotive, Bedding, Adjustable Bed, Work Furniture, Aerospace, and Geo Components. Raw material-related price increases and currency impact should also contribute to sales growth. The PHC acquisition is expected to add 2 percent to sales.