Q4 2023 Earnings Summary
Reported on Feb 9, 2024 (After Market Close)
Pre-Earnings Price$20.46Last close (Feb 9, 2024)
Post-Earnings Price$20.46Last close (Feb 9, 2024)
Price Change
$0.00(0.00%)
- Leggett & Platt is restructuring its Bedding segment to focus on high-demand products like Comfort Core innersprings, investing in efficient capacity, and adjusting its footprint to better serve customers, which is expected to drive improved operating efficiency and profitability.
- The company's Automotive segment is experiencing volume recovery and margin improvement, with expectations to return to a higher margin profile, providing significant benefits to the company.
- Strong backlogs in Aerospace and Hydraulic Cylinders businesses are anticipated to contribute to growth, with Aerospace backlogs at historic highs and Hydraulic Cylinders having strong backlog at least through the first half in the U.S.
- Significant decline in operating cash flows: The company expects operating cash flows to decrease from $500 million in 2023 to $325 million to $375 million in 2024, due to lower earnings from continued low volumes and less contribution from working capital improvements. Restructuring costs will further drag on cash flow.
- Margin pressures in key segments: There are ongoing margin pressures in the Bedding Products segment due to pricing declines in Specialty Foam and adjustments in innerspring pricing, resulting from commodity price deflation and global steel market dynamics. Metal margins have declined overall, impacting profitability.
- Uncertainty from imported mattress activity and antidumping outcomes: Despite being involved in antidumping cases, the company anticipates continued imported mattress activity, which may shift to different countries. This dynamic creates uncertainty and may continue to pressure U.S. producers, potentially affecting Leggett & Platt's bedding business.
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