Leggett & Platt reported a full-year earnings per share (EPS) of $2.62 in 2016, a 15 percent increase versus 2015. Full-year sales were $3.75 billion, a 4 percent decline versus 2015. Unit volume grew 2 percent, and acquisitions contributed 1 percent to sales growth. But the company said these were more than offset by divestitures (4 percent), raw material-related price deflation that occurred prior to late fourth quarter increases in steel costs (2 percent), and currency impact (1 percent).
Fourth quarter 2016 adjusted EPS from continuing operations was $.53, a 17 percent decrease versus 2015. This decrease was primarily due to rapid inflation in steel costs in late 2016, in contrast with significant deflation in steel costs in late 2015. Fourth quarter 2016 sales declined 4 percent versus the prior year largely due to divestitures.
President and CEO Karl G. Glassman commented, "Looking forward, we expect an approximate $250 million sales increase in 2017. The raw material deflation that impacted sales in 2016 has abated, and inflation is expected in 2017. We anticipate volume increases in our Automotive, Bedding, Adjustable Bed, Work Furniture, and Geo Components operations. Growth should come from content gains, new product introductions, market share increases, and overall market growth. With this anticipated growth, we expect that in 2017 we will achieve strong profit margins and increased EPS.”