Leggett & Platt Cuts 4Q View On Market Demand
The diversified manufacturer now expects adjusted earnings from continuing operations of 85 cents to $1 for the year and break-even to 15 cents a share for the fourth quarter.
Leggett & Platt also now expects fourth-quarter sales of $865 million, $75 million below its previous view and 17% lower than a year earlier.
The cuts continue a trend for Leggett & Platt, which last slashed its year guidance in October. At the time, the company cut its year guidance to a range of $1 to $1.15 from $1.10 to $1.40 and said it expected fourth-quarter earnings of 15 cents to 30 cents.
A month ago, Moody's Investors Service downgraded Leggett & Platt's credit ratings as a result of an accelerating contraction in residential and automotive consumer spending, which comprise well over half of its revenue.
In the third quarter, the company's net income fell by half, as falling margins took a bite out of the bottom line.
Despite the downturn, the company expects 2009 cash flow from operations will be sufficient to fully fund the estimated $260 milllion to $270 million needed for capital expenditures and dividends.
In after-hours trading, the company's shares were down 3.4% at $14.99, reversing a 7% rise during the regular session.
-By Jay Miller, Dow Jones Newswires; 201-938-2331; jay.miller@dowjones.com
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Publié le 16 Décembre 2008 Copyright © 2008 Dowjones
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