Diversified furniture components manufacturer Leggett & Platt has reported a decline in first quarter sales but better than expected earnings.
According to its Q1 2025 trading update, total sales were down 7.2% to $1.0 billion, with organic sales down 7%.
“Volume was down 5%, primarily from continued weak demand in residential end markets, soft demand in Automotive and Hydraulic Cylinders, the expected exit of a customer in Specialty Foam, and restructuring-related sales attrition,” the group said. “These declines were partially offset by higher trade rod and wire sales and growth in Textiles and Aerospace.”
First quarter EBIT was $63 million, flat to first quarter 2024 EBIT. Adjusted EBIT was $67 million, a $3 million increase.
Within its segments, Bedding Products saw sales decline 3%, with volumes down 10% due to demand softness in U.S. and European bedding markets. EBIT decreased $6 million.
Furniture, Flooring & Textile Products experienced a decline in sales by 1%, while volumes rose 2% due to growth in Textiles which was partially offset by continued weak demand in residential end markets. EBIT increased $1 million.
Looking ahead, sales are expected to be $4.0–$4.3 billion, down 2% to 9% versus 2024.
President and CEO Karl Glassman commented: “We are pleased to report better than anticipated first quarter earnings. Our earnings improvement is a testament to the excellent execution of our restructuring plan and operational efficiency improvement initiatives, as well as disciplined cost management.
“As we navigate the complex and fluid tariff environment, we are mitigating impacts while pursuing any opportunities to capture increased demand for domestically produced products. While we expect that tariffs overall may be a net positive for our business, we are concerned about potential negative effects on inflation, consumer confidence, and discretionary demand.
“Now more than ever, we are committed to our strategic priorities of strengthening our balance sheet, improving profitability and operational efficiency, and positioning the company for long-term growth. Our restructuring plan continues to make progress, and in early March we divested a small U.S. machinery business. As part of our ongoing strategic portfolio review, we recently signed an agreement to sell our Aerospace business, which we expect to close this year.
“Given our conservative outlook due to macroeconomic uncertainties as we entered the year and despite the current trade policy uncertainties, we are maintaining our sales and adjusted EPS guidance for 2025. Although the domestic bedding industry is now expected to be more challenged than previously anticipated, the resulting lower volume will likely be offset primarily by steel-related tariff benefits.
“Our business is resilient, and with the support of our dedicated employees, we remain confident in our ability to successfully execute our strategic priorities and deliver long-term shareholder value.”
