Leggett & Platt Reports Strong Q3 Results

Quarterly Revenue and Earnings Surpass Expectations

Leggett & Platt, a leading manufacturer of diversified engineered components, recently announced its financial results for the third quarter and nine months ended September 30, 2024. The company reported revenue of $1.6 billion for the quarter, a 7% increase compared to the $1.5 billion reported in the same period last year. Net income for the quarter amounted to $196.4 million, or $1.61 per diluted share, up from $1.48 per diluted share in the prior-year quarter. Both revenue and earnings exceeded analysts' expectations.

Growth Across Diverse Markets

The company's growth was driven by strong performance across its diverse businesses. The Residential Furnishings segment, which accounts for approximately 50% of total revenue, saw a 6% year-over-year revenue increase. The Industrial Products segment, which includes aerospace and automotive components, reported a 5% revenue increase. The Specialty Products segment, which encompasses bedding components and other products, experienced an 11% revenue increase.

Improved Profit Margins and Cost Control

Leggett & Platt also reported improving profit margins. The company's gross margin for the quarter was 29.2%, compared to 28.7% in the previous year's quarter. The company attributed the margin improvement to cost control initiatives, operational efficiencies, and favorable product mix. Operating expenses as a percentage of revenue decreased slightly, further contributing to the margin expansion.

Strong Balance Sheet and Shareholder Returns

As of September 30, 2024, Leggett & Platt had a strong balance sheet with $1.4 billion in cash and cash equivalents and total debt of $1.9 billion. The company's debt-to-equity ratio was 0.48, and its interest coverage ratio was 7.3 times.

The company also announced that its board of directors had approved a 10% increase in the quarterly dividend to $0.55 per share, payable on December 15, 2024, to shareholders of record on November 30, 2024. This marks the 52nd consecutive year that Leggett & Platt has increased its dividend.

Positive Outlook for the Remaining Year

Leggett & Platt expressed optimism about the remaining quarters of 2024. The company noted strong order backlogs and a favorable economic outlook. The company reaffirmed its full-year guidance for revenue growth in the range of 7% to 9% and earnings per share growth in the range of 10% to 12%.