By Denny Jacob
Leggett & Platt experienced a significant drop of 12% in its stock value, reaching $20.42 on Friday. This decline can be attributed to weak demand that continues to impact sales in the most recent quarter.
With the stock down by approximately 41% over the past 12 months, Leggett & Platt is heading towards its lowest closing price since June 2012.
Leggett & Platt is a company involved in the production of furniture, engineered components, and various products for residential homes, offices, automobiles, and commercial aircraft.
During the fourth quarter, the company reported a loss of $297.3 million equivalent to $2.18 per share. This figure is in stark contrast to the earnings of $52.8 million or 39 cents per share recorded during the same period a year ago.
The decline in sales is also evident, with a 7% slide amounting to $1.12 billion. The decrease in sales volume is primarily due to weak demand within residential end markets. However, there was some offsetting growth in the automotive and industrial end markets within the company’s specialized product segments.
Looking ahead to 2024, Leggett & Platt anticipates sales to range between $4.35 billion and $4.65 billion, which marks a decline of 2% to 8% compared to 2023. Chief Executive Mitch Dolloff stated that this forecast highlights the persistent challenges faced by the company due to soft demand in residential end markets.