Diversified manufacturer Leggett & Platt reported record first quarter sales of $1.32bn, a 15% increase against the first quarter of last year.
According to its latest trading update for Q1 2022, organic sales were up 13%, while volume was down 4%, primarily from demand softness in U.S. and European bedding markets, partially offset by growth in its Work Furniture, Aerospace, and Hydraulic Cylinders businesses.
First quarter EBIT was $138m, a first quarter record. EBIT was up $10m or 8% from first quarter 2021.
EBIT increased primarily from metal margin expansion in its Steel Rod business and pricing discipline in the Furniture, Flooring & Textile Products segment, partially offset by lower volume primarily in the Bedding segment, higher raw material and transportation costs in Automotive generally, and production inefficiencies and related premium freight costs in a North American Automotive facility.
President and CEO Mitch Dolloff commented: “We delivered another quarter of record sales and EPS, as well as improved cash from operations. Our employees around the world once again successfully managed an incredibly dynamic operating environment.
“Our full year guidance remains unchanged as we balance strong first quarter results, which were in line with our expectations, with continuing macro market uncertainties, including supply chain constraints, inflation, tighter monetary policy, the invasion of Ukraine, and COVID lockdowns in China.
“The hard work and dedication of our employees have positioned us well, both competitively and financially, to capitalize on long-term opportunities in our various end markets. Our enduring fundamentals give us confidence in our ability to continue creating long-term value for our shareholders.”