CARTHAGE, Mo., April 28, 2016 /PRNewswire/ --


    --  1Q EPS was $.63, a first quarter record and 26% improvement versus 1Q
        2015
    --  1Q sales were $938 million, a 3% decrease versus 1Q 2015 due to
        commodity deflation and divestitures
    --  EBIT margin improved to 13.5%, a 190 basis point gain over 1Q last year
    --  Raising EPS guidance; anticipate record continuing ops EPS of $2.40 -
        2.60 on sales of $3.9 - 4.1 billion

Diversified manufacturer Leggett & Platt reported earnings of $.63 per share, a first quarter record. The EPS improvement (versus $.50 in 2015) reflects higher unit volume, a tax-related benefit ($.04) from the adoption of a new accounting standard regarding stock-based compensation, and non-recurrence of last year's impairment charge ($.02) in the now-divested Steel Tubing business unit.

Sales from continuing operations were $938 million, a decline of 3% versus 1Q 2015 as a result of late-2015 divestitures. Unit volume grew 4%, and acquisitions added 1% to sales; however, these gains were offset by raw material-related price deflation and currency rate changes.

EBIT margin improved 190 basis points versus first quarter last year, from 11.6% to 13.5%, as a result of higher unit volume, efficiency improvements, and continued portfolio management.

CEO Comments
President and CEO Karl G. Glassman commented, "We are very pleased with our start to 2016. During the first quarter we generated volume gains and improved margins, strong cash flow from operations, and record first quarter EPS. For the full year, we expect to achieve similar results: strong EBIT margin, significantly improved operating cash flow, and record EPS.

"Overall unit volume grew 4% during the quarter, despite short-term demand softness in certain of our residential end markets. We continue to benefit from ongoing content gains and new program awards in our Automotive business, the bedding market's shift to Comfort Core springs, and demand strength in our Adjustable Bed unit.

"Our primary financial goal is to achieve Total Shareholder Return (TSR(1)) that ranks in the top third of the S&P 500 over rolling three-year periods. For the three years that began January 1, 2014, we have so far (over the last 28 months) generated TSR of 25% annually; that performance ranks within the top 10 percent of the S&P 500.

"We are achieving these results while maintaining our strong financial base. We ended the quarter with over $300 million available through our commercial paper program. Net debt to net capital was 37%, comfortably within our 30% - 40% target range. At quarter end, the company's debt was 1.6 times its trailing 12-month adjusted(2 )EBITDA."

Dividends, and Stock Repurchases
In February, Leggett & Platt's Board of Directors declared a $.32 first quarter dividend, one cent higher than last year's first quarter dividend. Thus, 2016 marks the 45(th) consecutive annual dividend increase for the company, with a compound annual growth rate of 13%. Leggett & Platt is proud of its dividend record and plans to continue it.

At yesterday's closing share price of $48.59, the indicated annual dividend of $1.28 per share generates a dividend yield of 2.6%, one of the higher dividend yields among the 50 stocks of the S&P 500 Dividend Aristocrats.

During the first quarter the company purchased 2.5 million shares of its stock at an average price of $43.75, and issued 1.1 million shares through employee benefit plans and option exercises. The number of shares outstanding declined to 134.2 million, a 2.6% reduction over the last 12 months.

Increasing 2016 Continuing Operations EPS Guidance to $2.40 - $2.60
With strong first quarter earnings, the company is raising EPS guidance by $.10. For 2016, EPS from continuing operations is now expected to be $2.40 to $2.60. The new accounting standard for stock-based compensation resulted in a tax-related first quarter EPS benefit of $.04, but is expected to have a much smaller impact on each of the remaining quarters of 2016. Accordingly, this guidance assumes a 27% full-year effective tax rate.

Sales guidance is unchanged at $3.9-$4.1 billion, which equates to overall growth between zero and 5%. This guidance assumes unit volume growth in the mid-to-high single digits, reflecting strong demand in many of the company's product categories and improvement in the majority of its end markets. As partial offsets to the volume growth, sales guidance includes an approximate 2% reduction from commodity deflation, and a 2% decrease from late 2015 divestitures, net of small acquisitions.

Based upon this guidance, 2016 EBIT margin should be equivalent to, or slightly above, 2015's adjusted EBIT margin of 12.9%. The benefit to margin from higher unit volume should be partially offset by non-recurrence of the 2015 pricing lag.

Discontinued operations EPS for 2016 is forecast at $.15 due to the benefit the company receives, as plaintiff, from settlement of a longstanding antitrust claim. This cash settlement should generate $25 million of after-tax income in the second quarter. The bulk of the benefit ($21 million) is associated with discontinued operations, and specifically attributable to Leggett's former Prime Foam Products business (which was sold in 2007).

Cash from operations is expected to be approximately $500 million in 2016, which includes the $25 million of antitrust settlement proceeds. Capital expenditures should be roughly $130 million, and dividend payments should approximate $175 million. The company's target for dividend payout is 50-60% of net earnings; however, actual payout was higher for several years prior to 2015, and as a result dividend growth was modest. But with recent growth in annual earnings, the company is now within its target payout range, and has flexibility to consider future dividend growth that more closely aligns with EPS growth.

The company's top priorities for use of cash are organic growth, dividends, and strategic acquisitions. After funding those priorities, if there is still cash available, the company generally intends to repurchase its stock (rather than repay debt early or stockpile cash). Management has standing authorization from the Board of Directors to buy up to 10 million shares each year; however, no specific repurchase commitment or timetable has been established. The company expects to repurchase 4-5 million shares in 2016, and issue about 2 million shares, primarily for employee benefit plans.

SEGMENT RESULTS - First Quarter 2016 (versus the same period in 2015)
Residential Furnishings
- Total sales decreased $25 million, or 5%. Same location sales decreased 5%; unit volume increased 2%, but was more than offset by raw material-related price decreases and currency impacts. EBIT (earnings before interest and taxes) decreased $4 million, with the benefit from overall higher unit volume more than offset by a FIFO inventory impact and lower unit volume in stronger-margin businesses.

Commercial Products - Total sales increased $21 million, or 15%. Same location sales grew 7%, primarily from unit volume growth in Adjustable Bed and Fashion Bed. EBIT increased $6 million due to higher sales, operational improvements, and a $2 million gain on sale of a building.

Industrial Materials - Total sales decreased $62 million, or 28%. Same location sales decreased due to steel-related price deflation and lower Drawn Wire volume. Divestiture of the Steel Tubing business in December 2015 reduced sales by $25 million. EBIT increased $12 million, with the impact from lower volume more than offset by cost and efficiency improvements, and non-recurrence of last year's $6 million impairment charge in the Steel Tubing business unit.

Specialized Products - Total sales increased $21 million, or 9%. Same location sales increased 10%, with volume gains across the segment partially offset by currency impacts (-2%). EBIT increased $7 million primarily due to increased volumes.

Slides and Conference Call
A set of slides containing summary financial information is available from the Investor Relations section of Leggett's website at www.leggett.com. Management will host a conference call at 7:30 a.m. Central (8:30 a.m. Eastern) on Friday, April 29. The webcast can be accessed (live or replay) from Leggett's website. The dial-in number is (201) 689-8341; there is no passcode.

Second quarter results will be released after the market closes on Thursday, July 28, with a conference call the next morning.

FOR MORE INFORMATION: Visit Leggett's website at www.leggett.com.

COMPANY DESCRIPTION: At Leggett & Platt (NYSE: LEG), we create innovative products that enhance people's lives, generate exceptional returns for our shareholders, and provide sought-after jobs in communities around the world. L&P is a 133 year-old diversified manufacturer that designs and produces engineered products found in most homes and automobiles. The company is comprised of 17 business units, 20,000 employee-partners, and 130 manufacturing facilities located in 19 countries.

Leggett & Platt is the leading U.S. manufacturer of: a) components for home furniture and bedding; b) carpet cushion; c) adjustable bed bases; d) work furniture and components; e) high-carbon drawn steel wire; f) automotive seat support & lumbar systems; and g) bedding machinery.

FORWARD-LOOKING STATEMENTS: Statements in this release that are not historical in nature are "forward-looking." These statements involve uncertainties and risks, including the company's ability to improve operations and realize cost savings, price and product competition from foreign and domestic competitors, changes in demand for the company's products, cost and availability of raw materials and labor, fuel and energy costs, future growth of acquired companies, general economic conditions, possible goodwill or other asset impairment, foreign currency fluctuation, litigation risks, and other factors described in the company's Form 10-K. Any forward-looking statement reflects only the company's beliefs when the statement is made. Actual results could differ materially from expectations, and the company undertakes no duty to update these statements.

CONTACT: Investor Relations, (417) 358-8131 or invest@leggett.com
David M. DeSonier, Senior Vice President of Corporate Strategy and Investor Relations
Susan R. McCoy, Vice President of Investor Relations

(1 )TSR = (Change in Stock Price + Dividends) / Beginning Stock Price; assumes dividends are reinvested.
(2 )To aid understanding of underlying operational profitability, adjusted EBITDA excludes a foam litigation expense accrual of $6m pretax in 2015, and a non-cash pension buyout charge of $12m pretax in 2015.


    LEGGETT & PLATT
    ---------------

    RESULTS OF OPERATIONS
     (1)                                          FIRST QUARTER
    ---------------------                          -------------

                    (In millions, except
                         per share data)     2016                    2015 Change
                    --------------------     ----                    ---- ------

    Net sales (from
     continuing
     operations)                           $938.4                  $966.2          (3%)

    Cost of goods sold                      704.8                   748.4
                                            -----                   -----

       Gross profit                         233.6                   217.8            7%

    Selling &
     administrative
     expenses                               105.1                    97.5            8%

    Amortization                              5.1                     5.2

    Other expense
     (income), net                          (3.7)                    3.4
                                             ----                     ---

       Earnings before
        interest and taxes                  127.1                   111.7           14%

    Net interest expense                      8.4                     9.7
                                              ---                     ---

       Earnings before
        income taxes                        118.7                   102.0

    Income taxes                             27.7                    28.7
                                             ----                    ----

       Net earnings from
        continuing
        operations                           91.0                    73.3

    Discontinued
     operations, net of
     tax                                      0.1                   (0.5)
                                              ---                    ----

       Net earnings                          91.1                    72.8

    Less net income from
     non-controlling
     interest                               (1.6)                  (1.1)
                                             ----                    ----

       Net earnings
        attributable to L&P                 $89.5                   $71.7           25%
                                            =====                   =====

    Earnings per diluted
     share

    From continuing
     operations                             $0.63                   $0.50           26%

    From discontinued
     operations                             $0.00                 ($0.00)

    Net earnings per
     diluted share                          $0.63                   $0.50           26%

    Shares outstanding

       Common stock (at end
        of period)                          134.2                   137.8        (2.6%)

       Basic (average for
        period)                             139.1                   141.9

       Diluted (average for
        period)                             141.2                   143.8        (1.8%)


    CASH FLOW                                    FIRST QUARTER
    ---------                                    -------------

                           (In millions)     2016                    2015 Change
                            ------------     ----                    ---- ------

    Net earnings                            $91.1                   $72.8

    Depreciation and
     amortization                            28.3                    29.6

    Working capital
     decrease (increase)                   (26.7)                 (94.3)

    Impairments                               0.0                     5.9

    Other operating
     activity                                18.6                    18.1
                                             ----                    ----

       Net Cash from
        Operating Activity                 $111.3                   $32.1          247%

    Additions to PP&E                      (27.7)                 (21.7)

    Purchase of
     companies, net of
     cash                                  (16.4)                 (12.2)

    Proceeds from asset
     sales                                    2.3                     6.3

    Dividends paid                         (43.5)                 (42.7)

    Repurchase of common
     stock, net                           (105.4)                 (60.4)

    Additions (payments)
     to debt, net                            80.8                    30.7

    Other                                   (4.4)                  (2.7)
                                             ----                    ----

       Increase (Decr.) in
        Cash & Equiv.                      $(3.0)                $(70.6)
                                            =====                  ======


    FINANCIAL POSITION                              31-Mar
    ------------------                              ------

                           (In millions)     2016                    2015 Change
                            ------------     ----                    ---- ------

    Cash and equivalents                   $250.2                  $262.2

    Receivables                             531.3                   532.0

    Inventories                             522.1                   506.0

    Held for sale                             5.7                    30.0

    Other current assets                     32.6                    78.8
                                             ----                    ----

       Total current assets               1,341.9                 1,409.0          (5%)

    Net fixed assets                        554.7                   523.1

    Held for sale                            20.0                    35.9

    Goodwill and other
     assets                               1,107.8                 1,130.6
                                          -------                 -------

       TOTAL ASSETS                      $3,024.4                $3,098.6          (2%)
                                         ========                ========

    Trade accounts
     payable                               $332.1                  $357.5

    Current debt
     maturities                               3.5                   202.2

    Held for sale                             2.7                    11.3

    Other current
     liabilities                            341.7                   382.1
                                            -----                   -----

       Total current
        liabilities                         680.0                   953.1         (29%)

    Long term debt                        1,032.0                   793.4           30%

    Deferred taxes and
     other liabilities                      221.2                   235.7

    Equity                                1,091.2                 1,116.4          (2%)
                                          -------                 -------

       Total Capitalization               2,344.4                 2,145.5            9%

       TOTAL LIABILITIES &
        EQUITY                           $3,024.4                $3,098.6          (2%)
                                         ========                ========


    LEGGETT &
     PLATT
    ---------

    SEGMENT
     RESULTS(1)                              FIRST QUARTER
    -----------                              -------------

                      (In millions)     2016                   2015      Change
                                        ----                   ----      ------

    External
     Sales
    --------

    Residential
     Furnishings                      $481.4                 $506.0              (4.9%)

    Commercial
     Products                          141.3                  123.5               14.4%

    Industrial
     Materials                          77.1                  117.7             (34.5%)

    Specialized
     Products                          238.6                  219.0                8.9%

         Total                        $938.4                 $966.2              (2.9%)
                                      ======                 ======               =====


    Total Sales
     (External +
     Inter-
     Segment)
    ------------

    Residential
     Furnishings                      $488.9                 $513.6              (4.8%)

    Commercial
     Products                          161.5                  141.0               14.5%

    Industrial
     Materials                         157.2                  219.2             (28.3%)

    Specialized
     Products                          249.0                  228.5                9.0%

         Total                      $1,056.6               $1,102.3              (4.1%)
                                    ========               ========               =====


    EBIT
    ----

    Residential
     Furnishings                       $47.7                  $52.1                (8%)

    Commercial
     Products                           13.8                    8.0                 73%

    Industrial
     Materials                          20.1                    8.0                151%

    Specialized
     Products                           46.3                   39.3                 18%

    Intersegment
     eliminations
     and other                         (0.8)                 (0.7)              (14%)

    Change in
     LIFO reserve                        0.0                    5.0              (100%)

         Total                        $127.1                 $111.7                 14%
                                      ======                 ======                 ===


    EBIT Margin
     (2)                                                            Basis Pts
    -----------                                                      ---------

    Residential
     Furnishings                        9.8%                 10.1%               (30)

    Commercial
     Products                           8.5%                  5.7%                280

    Industrial
     Materials                         12.8%                  3.6%                920

    Specialized
     Products                          18.6%                 17.2%                140

         Overall from
          Continuing
          Operations                   13.5%                 11.6%                190
                                        ====                   ====                 ===




    LAST SIX QUARTERS                                                  2014                                               2015             2016
    -----------------                                                  ----                                               ----             ----

    Selected Figures                                           4Q                                    1Q                        2Q                3Q          4Q            1Q
    ----------------                                           ---                                   ---                       ---              ---          ---           ---

    Net Sales ($ million)                                               953                                    966                     997              1009           945            938

    Sales Growth (vs. prior year)                                       11%                                   10%                     4%               1%         (1%)          (3%)

    Adjusted EBIT (3)                                                    90                                    112                     121               142           130            127

    Cash from Operations ($
     million)                                                           166                                     32                      95               130           102            111


    Adjusted EBIT Margin(3)                                            9.5%                                 11.6%                  12.1%            14.0%        13.8%         13.5%

    Adjusted EPS -continuing
     operations (diluted)(3)                                          $0.41                                  $0.50                   $0.53             $0.67         $0.64          $0.63

    Adjusted EBITDA (trailing
     twelve months) 4                                                   503                                    529                     545               579           617            632

    (Long term debt + current
     maturities) /Adj. EBITDA4                                          1.9                                    1.9                     1.9               1.7           1.5            1.6


    Net Debt to Net Capitalization
    ------------------------------

    Long term debt                                                      762                                    793                     827               985           942           1032

    Current debt maturities                                             202                                    202                     202                 3             3              4

    Less cash and equivalents                                         (333)                                 (262)                  (275)            (251)        (253)         (250)
                                                                       ----                                   ----                    ----              ----          ----           ----

         Net Debt                                                       631                                    733                     754               737           692            785
                                                                        ===                                    ===                     ===               ===           ===            ===

    Total capitalization                                               2143                                   2146                    2175              2311          2263           2344

    Current debt maturities                                             202                                    202                     202                 3             3              4

    Less cash and equivalents                                         (333)                                 (262)                  (275)            (251)        (253)         (250)
                                                                       ----                                   ----                    ----              ----          ----           ----

         Net Capitalization                                            2012                                   2086                    2102              2063          2013           2098
                                                                       ====                                   ====                    ====              ====          ====           ====

    Long Term Debt to Total
     Capitalization                                                     35%                                   37%                    38%              43%          42%           44%

    Net Debt to Net Capital                                             31%                                   35%                    36%              36%          34%           37%

       Management uses Net Debt to Net Capital to track leverage trends across time periods with variable levels of cash.


    Same Location Sales (vs. prior
     year)                                                     4Q                                    1Q                        2Q                3Q          4Q            1Q
    ------------------------------                             ---                                   ---                       ---              ---          ---           ---

    Residential Furnishings                                              9%                                    9%                     2%             (2%)         (3%)          (5%)

    Commercial Products                                                 24%                                   17%                    18%              15%         (1%)            7%

    Industrial Materials                                                 9%                                   12%                   (4%)            (10%)        (16%)         (19%)

    Specialized Products                                                 6%                                    6%                     0%               5%           7%           10%

         Overall from Continuing
          Operations                                                     6%                                    6%                   (1%)             (1%)         (2%)          (1%)


    (1)Segment information the 4Q
     2015 move of the logistics
     operations from Residential
     Furnishings to Industrial
     Materials.

    (2)Segment margins calculated on
     Total Sales.   Overall company
     margin calculated on External
     Sales.

    (3)Excludes litigation accruals
     of $22m pretax ($.09/share) in
     4Q'14, $1.5m pretax (<
     $.01/share) in 2Q'15, and $4m
     pretax ($.02/share) in 4Q'15;
     excludes $12m pretax
     ($.05/share) one-time noncash
     pension buyout charge in 4Q'15.

    4EBITDA based on trailing twelve
     months. Excludes items in
     Footnote 3.

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SOURCE Leggett & Platt