Leggett & Platt Trims Q2 & Year-End Outlook

Carthage, MO, June 19, 2007--Leggett & Platt cut its second quarter and 2007 outlook, citing continued market weakness for the remainder of the year, sending its shares down about 5 percent in after-market trade.


The company, which cut its full-year forecast for the second time in 2007, said its outlook reflects reduced sales expectations and incremental restructuring-related costs.


"Given the limited visibility into our markets, we cannot forecast a robust second half of the year. We simply do not see a major catalyst that will appreciably increase demand...," Chief Executive David Haffner said in a statement.


The company forecast full-year earnings of $1.35 to $1.55 a share and sales of $5.20 billion, excluding discontinued operations, down from its April estimate of $1.60 to $1.80 a share on sales of $5.40 billion.


Analysts expect earnings of $1.58 a share, before special items, on revenue of $5.40 billion.


The provider of store shelving, steel wire and other components said several of its markets have weakened considerably in the past eight weeks, resulting in a broad-based revenue shortfall.


Leggett said it now expects second-quarter earnings of 31 cents to 36 cents a share on sales from continuing operations of about $1.30 billion, down from its April estimate of 42 cents to 47 cents a share on sales of $1.38 billion.


This decline results from 8 cents a share less earnings from continuing operations and 3 cents a share of incremental restructuring-related costs, it added.


Analysts expect second-quarter earnings of 38 cents a share, before special items, on revenue of $1.37 billion. The company sees same location sales to be down by about 6 percent for the second quarter.


Leggett said it is examining a few remaining underperforming operations, and may close those facilities.



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