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    Leggett & Platt Inc (LEG)

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    Leggett & Platt, Incorporated (LEG) is a diversified manufacturer that designs and produces a wide range of engineered components and products found in homes, offices, and automobiles. The company operates approximately 120 production facilities in 18 countries and is organized into three main operating segments. Leggett & Platt sells components and machinery for bedding manufacturers, engineered components for the automotive and aerospace industries, and supplies for residential and work furniture manufacturers.

    1. Bedding Products - Supplies components and machinery for bedding manufacturers, produces private-label finished mattresses, and adjustable bed bases. Includes specialty foam chemicals, steel rod, and drawn steel wire.

      • Key Products: Steel rod and drawn wire, innersprings, specialty foam, private-label finished mattresses, adjustable beds, machinery for bedding production.
    2. Furniture, Flooring & Textile Products - Supplies components for residential and work furniture, produces private-label finished furniture, and distributes carpet cushion, hard surface flooring underlayment, and textile components.

    3. Specialized Products - Provides lumbar support systems, seat suspension systems, motors and actuators, and control cables for automotive manufacturers. Produces and distributes tubing and tube assemblies for the aerospace industry and engineered hydraulic cylinders for material-handling and heavy construction industries.

    1. As you are exploring the potential sale of your Aerospace business as part of your strategic review, can you elaborate on how this divestiture will impact your overall profitability and long-term growth strategy?

    2. With the domestic Bedding market being more negatively impacted than overall consumption due to imports, what specific strategies are you implementing to mitigate the impact of imports on your domestic production, and how do you plan to regain market share?

    3. Given that Automotive volumes decreased by 9% this quarter and considering the volatility in markets like China and Europe, how are you adjusting your operations to address these challenges, and what are your expectations for the Automotive segment moving forward?

    4. The unfavorable product mix in Bedding Products and metal margin compression have significantly affected your EBIT; what initiatives are you undertaking to improve your product mix and margins in the Bedding segment, and when do you expect to see the benefits of these actions?

    5. Considering you have lowered your full-year sales and EPS guidance due to weaker demand trends and identified $10 million in corporate cost savings, are there additional cost-saving measures or restructuring plans, especially within your G&A functions, to align your cost structure with the current market conditions?

    Program DetailsProgram 1
    Approval DateAugust 7, 2024
    End Date/DurationNo specific end date; remains in force until repealed by the Board
    Total Additional AmountUp to 10 million shares each calendar year
    Remaining Authorization10 million shares as of Q3 2024
    DetailsRepurchases depend on factors like stock price, cash flow, and alternative uses for cash. Minimal repurchases expected for 2024.