Leggett swings to $14.2M profit in Q4; weak demand pressures year-end results

CARTHAGE, Mo. – Leggett & Platt reported a 5.3% decrease in fourth quarter sales, and a 7.2% decline in full year sales with declines across all business segments.

The company reported fourth quarter sales of $1.06 billion, down 5.3% from $1.1 billion in the same period of 2023. Full year sales were $4.4 billion, a 7.2% drop from $4.7 billion for fiscal 2023.

Leggett swung back to positive territory reporting net earnings of $14.2 million for the quarter compared with a net loss of $297.4 million in the fourth quarter of 2023. For the year, the company reported a net loss of $511.4 million, compared with a net loss of $136.8 million for 2023.

In the bedding segment, sales for the quarter dropped 6% to $420 million, compared with $449 million in the prior year period. The company said its volume in the segment dropped 3% due to softness in the U.S. and European bedding markets, the expected exit of a customer in specialty foam and restructuring-related attrition. For the full year, bedding trade sales dropped 11%  to $1.75 billion compared with $1.96 billion in 2023, and volume in bedding decreased 6% for the aforementioned reasons.

Sales for furniture, flooring and textile products dipped 4% for the quarter to $333 million from $3498 million in the prior-year quarter. For the full year, sales in the segments were down 6% to $1.39 billion, from $1.48 billion in 2023.

For the quarter, specialized product sales dropped 5% to $303.7 million, from $318.5 million in the fourth quarter last year. For the full year, sales were down 3% to $1.24 billion, from $1.28 billion in 2023 in the segment.

In 2024, we made excellent progress on our strategic priorities, particularly the execution of our restructuring plan, which consistently met or exceeded our expectations,” said Karl Glassman, president and CEO. “As part of our restructuring activities this year, we realized $22 million in EBIT benefit, generated $20 million in cash proceeds from real estate sales, minimized sales attrition, and kept costs on target. We prioritized balance sheet strength and reduced debt by $126 million. Additionally, we initiated a portfolio evaluation to assess opportunities for long-term growth and determine which businesses are the right long-term fit, through which we continue to explore a potential sale of our Aerospace Group.”

Glassman said the company’s sales and earnings were impacted by weak demand in residential markets and softening in the automotive and hydraulic cylinders in the second half of the year.

“We are encouraged that our strategic initiatives are delivering results,” he said. “We expect continued economic uncertainty in 2025, but we continue to focus on strengthening our balance sheet, improving operational efficiency and margins, and positioning the company for long-term growth. I am confident that the actions we are taking will improve profitability and create long-term shareholder value.”

In addition to releasing its fourth quarter and year-end earnings, the company announced that Sam Smith, who was named senior vice president and president of furniture, flooring and textiles products last year, has been promoted to president of the specialized products segment.

Smith has been instrumental in steering operational efficiency projects in the segment since mid-2024 and is already well-versed in each of these businesses,” Glassman said. “In addition to leading Specialized Products, Sam will continue to serve as executive vice president and president of the Furniture, Flooring & Textile Products segment.”

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