CARTHAGE, Mo.–Leggett & Platt’s bottom line lost a few shades of black in its third quarter, dropping 13 percent to $47.4 million.
The reduced net income came about largely because of a 366 basis-point fall in gross margin, to 19.5 percent, which occurred due to higher costs for raw materials. Selling and administrative expenses also rose 3 percent. These factors offset a 7 percent pickup in net sales, which were $866.5 million for the quarter.
Based on these results, Leggett & Platt said it expects total sales for 2010 to finish at between $3.3 billion and $3.35 billion—or about 8 to 9 percent ahead of 2009 sales.