CARTHAGE, Mo.—Net income for Leggett & Platt in the second quarter finished at $19 million, 59 percent below the company’s bottom line for the second quarter of 2008.
The figure includes a 50 percent drop in operating income for the company’s residential-furnishings segment, which totaled $24.1 million. Net sales for the whole company declined 29 percent to $757.4 million in the second quarter, while for the residential-furnishings segment net sales were off 24 percent to $418.3 million. The segment suffered from weak market demand throughout the quarter, which more than offset inflation-related price increases and market-share gains in specific categories, according to a Leggett & Platt statement.
The company was able to trim costs in the quarter, as evidenced by a 17 percent drop in selling, general and administrative expenses. “Operationally, we are seeing significant benefit from our efforts over the last three quarters,” said David Haffner, president and chief executive officer. Haffner said Leggett & Platt has improved gross margins thanks to cost containment, head-count reduction, facility consolidations and dispositions.
