L&P Reports Strong 2Q

Leggett & Platt Inc. (Carthage, Mo.), the diversified manufacturing company that’s the largest store fixture producer in the U.S., reported a 21 percent increase in sales for its second quarter of 2004.

The company also reported that its Commercial Fixturing and Components division enjoyed a 21.2 percent increase in total sales, although entirely from acquisitions. Same-location sales declined 0.3 percent. But net earnings gained 64 percent, as improvements arising from the tactical plan, and non-recurrence of last year’s inventory adjustments, were partially offset by a small restructuring charge.

“During the quarter, we achieved strong sales increases in all five segments, each benefiting from a combination of unit growth, inflation, and/or acquisitions,” said chairman and ceo Felix Wright. “Increased asset utilization and enhanced manufacturing efficiency helped improve margins through better overhead and fixed cost absorption. Inflation also contributed to our revenue growth. Second quarter market prices for steel (scrap, rod, and rolled steel) were roughly 60 percent-100 percent above year-ago levels, markedly increasing our raw material costs. Due to the magnitude of these increases, we continue to implement higher prices on our products.

“Our Fixture & Display group is progressing toward the margin improvement anticipated in our tactical plan,” Wright added. “We continue to believe in the long-term attractiveness of this business, and expect to deliver double-digit margins as market demand strengthens.”