CARTHAGE, Mo.–In what President and CEO David Haffner described as “a reasonably good quarter,” Leggett & Platt posted net income of $54.7 million, up 4 percent from last year’s second quarter.
The company’s bottom line firmed largely due a gain in net sales of 8.1 percent, to $945.2 million. At the same time, according to a Leggett & Platt statement, much of this growth came from items that brought a low level of incremental profit, such as inflation from price increases instituted to recover higher costs; currency exchange rates; and trade sales from the company’s steel mill.
Expenses pressured the company’s profits in the second quarter. Gross margin was down 131 basis points to 19.2 percent. Selling, general and administrative expenses picked up 10.5 percent on a dollar basis and 22 basis points as a percentage of sales, to 10.4 percent. Haffner said the “unusually high” SG&A costs were due to items non-recurring items.
Leggett & Platt said it expects net sales for all of 2011 to finish at between $3.5 billion and $3.7 billion, which would represent an increase of from 4 percent to 10 percent.