CARTHAGE, Mo. - Leggett & Platt (NYSE:LEG) shares fell 5.4% after the diversified manufacturer reported third-quarter earnings that missed analyst estimates and lowered its full-year guidance, citing persistent weakness in residential end markets and headwinds in its automotive business.
The company reported adjusted earnings per share of $0.32 for the third quarter, falling short of the $0.33 analyst consensus. Revenue came in at $1.1 billion, in line with expectations but down 6% from the same period last year.
Leggett & Platt lowered its full-year 2024 guidance, now expecting adjusted earnings per share of $1.00 to $1.10, below the previous analyst consensus of $1.14. The company also reduced its revenue forecast to $4.3-$4.4 billion, compared to the prior $4.3-$4.5 billion range.
"We expect weak demand in our residential end markets to persist into the fourth quarter due to a more challenging macro environment and softening in consumer spending," said President and CEO Karl Glassman. He added that the company's automotive business continues to face headwinds from the transition to electric vehicles, consumer affordability issues, and economic softness in Europe.
The company reported a 6% decrease in organic sales, primarily due to a 4% decline in volume across its key segments. Bedding Products sales fell 8% YoY, while Specialized Products and Furniture, Flooring & Textile Products segments saw declines of 6% and 4% respectively.
Despite the challenges, Leggett & Platt highlighted progress on its restructuring initiatives, paying down $124 million of debt in the quarter. The company now expects to realize $50-$60 million in annualized EBIT benefit from these initiatives by late 2025, up from its previous estimate of $40-$50 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.