Diversified manufacturer Leggett & Platt reported earnings of $.63 per share, a first quarter record. The EPS improvement (versus $.50 in 2015) reflects higher unit volume, a tax-related benefit ($.04) from the adoption of a new accounting standard regarding stock-based compensation, and non-recurrence of last year's impairment charge ($.02) in the now-divested Steel Tubing business unit.
Sales from continuing operations were $938 million, a decline of 3 percent versus 1Q 2015 as a result of late-2015 divestitures. Unit volume grew 4 percent, and acquisitions added 1 percent to sales; however, these gains were offset by raw material-related price deflation and currency rate changes.
Sales from continuing operations were $938 million, a decline of 3 percent versus 1Q 2015 as a result of late-2015 divestitures. Unit volume grew 4 percent, and acquisitions added 1 percent to sales; however, these gains were offset by raw material-related price deflation and currency rate changes.
EBIT margin improved 190 basis points versus first quarter last year, from 11.6 percent to 13.5 percent, as a result of higher unit volume, efficiency improvements, and continued portfolio management.
President and CEO Karl G. Glassman commented, "We are very pleased with our start to 2016. During the first quarter we generated volume gains and improved margins, strong cash flow from operations, and record first quarter EPS. For the full year, we expect to achieve similar results: strong EBIT margin, significantly improved operating cash flow, and record EPS.”