Leggett & Platt, Incorporated reported a decline in financial performance for the first quarter of 2025, with net trade sales totaling $1,022.1 million, a decrease of 7% compared to $1,096.9 million in the same period of 2024. The company's earnings before interest and taxes (EBIT) remained flat at $63 million, while net earnings attributable to common shareholders fell to $30.6 million, or $0.22 per share, down from $31.6 million, or $0.23 per share, in the prior year. The decrease in sales was attributed to lower demand in residential markets, automotive, and hydraulic cylinders, as well as restructuring-related sales attrition.
In terms of operational changes, Leggett & Platt is progressing with its 2024 Restructuring Plan, which aims to consolidate between 15 and 20 production and distribution facilities primarily in the Bedding Products segment. The company also announced the sale of its Aerospace Products Group for a cash purchase price of $285 million, which is expected to close in 2025, subject to regulatory approvals. Additionally, the company divested a small U.S. machinery business for $1 million, reducing its number of business units from 15 to 14.
The company reported a cash flow from operations of $7 million for the first quarter, an increase of $13 million from the same period last year, primarily due to improved working capital management. As of March 31, 2025, Leggett & Platt had cash and cash equivalents of $412.6 million, up from $350.2 million at the end of 2024. The company’s total debt stood at $1.9 billion, with a weighted average interest rate of 5.0%. The company also declared a quarterly dividend of $0.05 per share, significantly lower than the previous year's dividend of $0.46.
Looking ahead, Leggett & Platt anticipates continued challenges in market demand, particularly in the bedding and automotive sectors, due to economic factors such as consumer confidence and housing turnover. The company expects overall demand in 2025 to be lower than in 2024, influenced by ongoing restructuring efforts and potential impacts from tariffs. The company is also focused on optimizing its capital structure and may adjust its cash allocation strategies following the anticipated divestiture of its Aerospace business.
About LEGGETT & PLATT INC
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