Carthage, Missouri-based diversified wire manufacturer Leggett and Platt reported Thursday sales from continuing operations were $867 million, 7 percent (or $57 million) higher than 2009 third quarter sales.
Leggett and Platt's President and CEO David S. Haffner commented, "certain of our key markets, primarily related to residential furnishings, weakened noticeably in the third quarter. As a result, our third quarter sales were lower than those of second quarter, which rarely occurs. Though aggregate unit volume increased 6 percent in the third quarter (compared to 3Q 2009), this was a much slower pace than the 15 percent unit growth experienced during the first half of 2010."
Haffner continued, explaining that "strategically, during the quarter we completed the sale of the seventh, and last, of the businesses we planned to divest as part of the company's strategic realignment. The seven divestitures collectively generated $433 million of after tax cash proceeds, exceeding the original $400 million goal. Cash flow remains strong and net debt declined during the quarter."
Industrial materials sales increased $11 million, or 6 percent; unit volume was 2 percent higher, inflation increased sales by 10 percent, and a small divestiture reduced sales by 6 percent. Earnings before interest and taxes (EBIT) decreased $7 million, with the impact of higher volume more than offset by higher raw material costs and lost earnings contribution associated with the divestiture.
As for the remainder of 2010, Leggett anticipates cash from operations to exceed $300 million for the full year, which is more than sufficient to provide the cash needed for capital expenditures and dividends.