Leggett & Platt has reported its financial results for the fourth quarter and full year of 2024, along with providing guidance for 2025. In the fourth quarter of 2024, the company saw a 5% decrease in sales compared to the same period in 2023, with 4Q sales totaling $1.1 billion. The adjusted earnings per share (EPS) for the same period was reported at $0.21, a $0.05 decrease from the adjusted EPS in 4Q23.
For the full year of 2024, Leggett & Platt reported sales of $4.4 billion, reflecting a 7% decrease compared to 2023. The company's EPS for 2024 was ($3.73), while the adjusted EPS stood at $1.05, showing a decrease of $0.34 from the adjusted EPS in 2023.
Looking ahead to 2025, the company anticipates sales in the range of $4.0–$4.3 billion and an EPS of $0.83–$1.24, with an adjusted EPS of $1.00–$1.20.
In terms of leadership, Sam Smith has been appointed as the president of the specialized products segment. Leggett & Platt's President and CEO, Karl Glassman, noted the impact of weak demand in residential end markets and softening demand in automotive and hydraulic cylinders on the company's 2024 sales and earnings.
The company's restructuring plan has shown progress, resulting in $22 million in EBIT benefit and $20 million in cash proceeds from real estate sales in 2024. Additionally, the company reduced its debt by $126 million during the same period.
It's important to note the significant impact of various adjustments on the company's financial metrics. For instance, in the fourth quarter of 2024, Leggett & Platt reported a net loss of $430 million in earnings before interest and taxes (EBIT), which was a decrease of $340 million from 2023. Adjusted EBIT for 2024 was $267 million, a $67 million decrease from 2023.
Regarding liquidity, the company had total liquidity of $793 million at the end of December 2024, with $350 million in cash on hand and $443 million in capacity remaining under its revolving credit facility.
The restructuring plan is expected to yield annualized EBIT benefits of $60–$70 million after the initiatives are fully implemented in late 2025. Furthermore, Leggett & Platt is expecting approximately $35–$40 million of incremental EBIT benefit to be realized in 2025 and approximately $5–$10 million in 2026.
As a result of these announcements, the company's shares have moved 2.8% on the market, and are now trading at a price of $10.0. If you want to know more, read the company's complete 8-K report here.
