L&P Reports Sales Down in 3Q

Leggett & Platt Inc. (Carthage, Mo.), the manufacturing conglomerate with a strong presence in the store fixture and retail p-o-p communities, reported that sales for the third quarter 2001, ending September 1, were down 6.4 percent company-wide. The company also announced that it has consolidated or sold 12 facilities, including the sale of its consumer shelving and kitchen housewares portion of its Retail Store Fixture and Display Group; restructured other operations; eliminated about 3300 full-time jobs; and temporarily reduced capital and acquisition spending.

According to Steven K. Platt of S.K. Platt & Co. (Hinsdale, Ill.), a financial consultant who closely follows the retail and fixture businesses, total sales in L&P's Retail Store Fixture and Display Group (which also includes the operations of its storage and material handling systems and components for office and institutional furnishings) decreased 9.2 percent for the quarter.

During a conference call attended by Platt, Robert Griffin, L&P senior vp and president of the Retail Fixture and Display Group, said that over the last 12-15 months, sales of retail fixtures and p-o-p products have been reduced, industry-wide. He said he looks for a recovery during the second half of 2002, due to pent-up demand. He also said he felt confident that the company's multi-plant, nationwide presence, along with its strong balance sheet, will enhance the group's business performance going forward. L&P's Retail Fixture and Display Group is the largest in the store fixture manufacturing industry. “Many of its smaller competitors are suffering,” notes Platt, “and at least seven of its larger competitors are experiencing financial problems.” He notes that L&P's competitors'revenue is off 20-25 percent this year, while sales at the retail fixture group are flat to slightly up.