Q3 2024 Leggett & Platt Inc Earnings Call Transcript
Key Points
- Leggett & Platt Inc (LEG) is actively executing a restructuring plan, which is on track and expected to yield significant EBIT benefits by late 2025.
- The company has identified approximately $10 million in corporate cost savings, expected to be realized in 2025.
- Despite weaker than expected results, adjusted EBIT margin improved by 60 basis points sequentially in the third quarter.
- The automotive team has realized efficiency improvements and closely managed costs, resulting in improved EBIT margins.
- Leggett & Platt Inc (LEG) is prioritizing debt reduction, having reduced total debt by $124 million in the third quarter.
- Third quarter sales volumes were below expectations due to weaker demand in residential end markets and headwinds in automotive, hydraulic cylinders, and Geo Components.
- The company has reduced its full-year sales and earnings guidance due to persistent sluggish demand.
- The U.S. bedding market continues to experience negative volume comparisons, with domestic production likely down high single digits.
- Automotive market volatility across geographies, particularly in China and Europe, has led to production declines and program launch delays.
- Operating cash flow decreased by $48 million in the third quarter compared to the same period in 2023, driven by less benefit from working capital and lower earnings.
Greetings and welcome to the Leggett & Platt Third Quarter 2024 for webcast and earnings conference call.
At this time, all participants are in a listen only mode.
A brief question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.
As a reminder, this conference is being recorded.
Is now my pleasure to introduce Cassie J. Branscum, Vice President of Investor Relations.
Thank you.
You may begin.
Good morning, and welcome to Leggett & Platt Third Quarter 2024 earnings call. With me on the call today are Karl G. Glassman, CEO. Benjamin M. Burns, CFO, J. Tyson Hagale, President at the Bedding products segment, R. Samuel Smith, Jr., President of the Furniture, Flooring and Textile Products segment, and Colleen and Taobao, our Manager of Investor Relations, the agenda, this current demand trends and provide an
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