L&P Reports Strong 4Q

Leggett & Platt (Carthage, Mo.), the diversified manufacturing company, reported that sales of its Commercial Fixturing and Components division, which makes store fixtures for the retail design industry, increased 27.5 percent in its fourth quarter 2003. While same-location sales increased 10.6 percent during the quarter, acquisitions contributed about 60 percent of the overall increase.

For the full year, the division's total sales increased 7.4 percent, all of that the result of acquisitions. Same-location sales declined 0.4 percent. In July 2003, the company acquired RHC Spacemaster Corp., a $200 million fixture manufacturer headquartered in Melrose Park, Ill.

The company as a whole enjoyed record fourth-quarter sales and a 12.7 percent increase; and a 2.7 percent sales increase for the full year 2003.

“We saw very positive trends, in almost all of our businesses, at year-end,” said chairman and ceo Felix Wright. “We are optimistic about 2004. Externally, the economy and our markets seem headed in the right direction. Consumer sentiment is improving, interest rates and inflation remain low, and manufacturing activity is increasing. Internally, we are gaining ground in key areas. In October we began implementing price increases aimed at recovering significantly higher steel costs. We also initiated a tactical plan to improve the performance of our fixture and display businesses.”

The company said EBIT (earnings before interest and taxes) decreased 45 percent in the fixture and display business primarily due to inventory write-downs, the impact of currency rates, higher steel costs, operational inefficiency and price competition. But it said it expects a modest EBIT improvement from operating initiatives in that business. “The company will be better able to quantify this improvement later in the year,” it said in a statement.