Leggett & Platt posts record adjusted EPS in 2013

Highlights:

- 2013 Continuing Operations adjusted EPS was a record $1.54, within guidance and 5% improved over 2012
- Three-year TSR, ending 12-31-2013, ranks in the top half of the S&P 500 companies
- Cash flow from operations was $417 million for the full year
- Net debt to net capital decreased to 27% at year-end (versus 29% the prior year-end)
- Repurchased 6.0 million shares during the year; outstanding shares declined 2%
- 2014 EPS guidance is $1.65 - 1.85 on sales of $3.85 - 4.05 billion

Diversified manufacturer Leggett & Platt announced record full-year adjusted EPS from Continuing Operations of $1.54 for 2013, a 5% improvement over comparable 2012 EPS of $1.47, and within the company's October guidance range of $1.50 - 1.55.

Full-year EPS, without adjustments, declined to $1.34 in 2013, from $1.70 in 2012, but includes several unusual items. 2013 EPS includes a fourth quarter noncash impairment charge of $.31 (or $67 million pre-tax), a third quarter acquisition-related benefit of $.06, and net earnings of $.05 from discontinued operations. 2012 EPS includes a fourth quarter unusual tax benefit of $.18 and net earnings of $.05 from discontinued operations.

Full year sales increased 1%, to $3.75 billion, as a result of acquisitions. Same location sales were flat, with unit volume increasing 1%, but offset by reduced rod mill trade sales. EBIT from underlying operations was essentially unchanged from 2012 to 2013.

Fourth Quarter Results

Fourth quarter adjusted EPS was $.35, a 9% increase compared to last year. Without adjustments, fourth quarter 2013 EPS was $.04, but included a $.31 noncash impairment charge. Fourth quarter 2012 EPS was $.50, but included an $.18 unusual tax benefit.

Fourth quarter sales grew 5% versus the prior year, the strongest quarterly sales growth achieved during 2013.  Unit volumes increased 3%, and acquisitions added 2% to sales.

Fourth quarter EBIT was negatively impacted by an unexpected increase in steel costs, resulting in a larger-than-expected LIFO expense of $12 million in the quarter. The EPS impact of this LIFO expense was essentially offset by several favorable fourth-quarter tax items. The company is implementing price increases to recover the higher steel costs, and expects to realize a benefit in the first half of 2014 that offsets fourth quarter LIFO expense. 

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Leggett & Platt