Leggett & Platt Inc. Q3 Profit Decreases, Misses Estimates from

Leggett & Platt Q3 Profit Falls, Misses Analyst Estimates

Furniture and Bedding Supplier Q3 Profit Drops Over 50%

Company Blames High Transportation Costs, Supply Chain Issues

Leggett & Platt (NYSE: LEG), a leading manufacturer of engineered components and products for the furniture and bedding industries, reported a significant decline in its third-quarter profit, falling short of analysts' expectations. The company's net income for the quarter ended September 30, 2023, dropped by over 50% to $55.8 million, compared with $121.6 million in the same period last year. The furniture and bedding supplier cited higher transportation costs and ongoing supply chain disruptions as the primary factors behind its disappointing financial performance. The company has been facing challenges in securing raw materials and components due to global supply chain constraints, leading to production delays and increased costs. Additionally, rising fuel prices have impacted the company's transportation expenses, further squeezing its profit margins. Leggett & Platt's revenue for the third quarter also fell, declining by 3.2% to $1.12 billion from $1.16 billion in the prior-year quarter. The decrease was primarily driven by lower sales in the company's Bedding Products and Residential Furniture Products segments, which were partly offset by growth in its Engineered Products segment. Despite the challenges, Leggett & Platt remains optimistic about its long-term prospects. The company highlighted its focus on cost-cutting initiatives, operational efficiency improvements, and new product development as key strategies for navigating the current headwinds. Analysts had estimated Leggett & Platt's Q3 earnings per share at $0.82, but the company reported actual EPS of $0.53, missing expectations by a wide margin. The company's stock price dropped by around 5% in after-hours trading following the announcement of its financial results. In a statement, Leggett & Platt's President and CEO, Karl G. Glassman, acknowledged the company's Q3 challenges but expressed confidence in its ability to overcome them. "While our third-quarter results were below our expectations, we remain confident in our long-term strategy and the resilience of our business," Glassman said. "We are taking steps to address the current headwinds, including implementing cost-saving measures and exploring new growth opportunities." The company's financial performance in the coming quarters will be closely watched by investors and analysts as the furniture and bedding industry continues to navigate the challenging economic environment. Leggett & Platt's ability to mitigate the impact of rising costs and supply chain disruptions will be crucial for its future success.