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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) February 2, 2000
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Leggett & Platt, Incorporated
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(Exact name of registrant as specified in its charter)
Missouri 1-7845 44-0324630
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
No. 1 Leggett Road, Carthage, MO 64836
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (417) 358-8131
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(Former name or former address, if changed since last report.)
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Item 5. OTHER EVENTS
The Company issued a press release today, February 2, 2000, selected
portions of which follow:
The Company reported fourth quarter and full year earnings on February 2,
2000. In the fourth quarter, 1999 sales increased to $965.1 million (up 15.2%),
net earnings increased to $74.3 million (up 20.8%), and earnings per diluted
share increased to $.37 (up 19.4%) - all compared with 1998. Sales for the full
year were $3.78 billion (up 12.1%), net earnings were $290.5 million (up 17.1%),
and earnings per diluted share were $1.45 (up 16.9%). Summaries of the unaudited
results of operations for the quarter and year ended December 31, 1999 and 1998
are shown below. Segment results for each of these periods are also listed
below.
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<CAPTION>
Quarter Ended December 31, 1999 1998
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(All amounts in millions,
except per share data)
<S> <C> <C>
Net sales........................................... $ 965.1 $ 837.7
Cost of goods sold.................................. 700.5 616.6
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Gross profit........................................ 264.6 221.1
Selling, distribution & administrative expenses..... 128.8 109.3
Other deductions, net of other income............... 6.2 5.9
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Earnings before interest and income taxes........... 129.6 105.9
Interest expense.................................... 12.5 9.8
Interest income..................................... 1.3 1.6
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Earnings before income taxes........................ 118.4 97.7
Income taxes........................................ 44.1 36.2
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Net earnings........................................ $ 74.3 $ 61.5
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Earnings per share
Basic............................................. $ .37 $ .31
Diluted........................................... $ .37 $ .31
Average shares outstanding
Basic............................................. 198.5 198.6
Diluted........................................... 200.6 201.0
Year Ended December 31, 1999 1998
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Net sales........................................... $3,779.0 $3,370.4
Cost of goods sold.................................. 2,758.7 2,498.9
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Gross profit........................................ 1,020.3 871.5
Selling, distribution & administrative expenses..... 491.2 422.8
Other deductions, net of other income............... 26.6 19.6
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Earnings before interest and income taxes........... 502.5 429.1
Interest expense.................................... 43.0 38.5
Interest income..................................... 3.1 5.0
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Earnings before income taxes........................ 462.6 395.6
Income taxes........................................ 172.1 147.6
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Net earnings........................................ $ 290.5 $ 248.0
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Earnings per share
Basic............................................. $ 1.46 $ 1.25
Diluted........................................... $ 1.45 $ 1.24
Average shares outstanding
Basic............................................. 198.5 197.7
Diluted........................................... 200.9 200.7
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Segment Results - fourth quarter
Residential Furnishings - Total sales increased 9.9%, with same location growth
of 2.3%. Numerous acquisitions accounted for the balance of the sales growth.
Earnings before interest and income taxes (EBIT) increased 11.2%, reflecting
improved efficiencies on higher production and acquisitions.
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Commercial Furnishings - Total sales increased 39.1% due to numerous
acquisitions. In this seasonally slow quarter for store fixtures and display
business, same location sales were down almost 1%. EBIT increased 22.9%,
reflecting acquisitions and the impact of lower volume in some operations.
Aluminum Products - Total sales increased 9.9%, with same location growth of
8.9%. One acquisition accounted for the balance of the sales growth. EBIT nearly
tripled, reflecting improved efficiencies on higher production and more normal
cost/price relationships.
Industrial Materials - Total sales increased 4.2%, with same location growth of
2.6%. One acquisition accounted for the balance of the sales growth. EBIT
increased 6.5%, reflecting improved efficiencies on higher production and
reduced costs.
Specialized Products - Total sales increased 10.7% due to an acquisition. Same
location sales were about unchanged. EBIT increased 25.0%, reflecting the
acquisition and improved efficiencies.
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<CAPTION>
Inter-
External Segment Total
Quarter Ended December 31, 1999 Sales Sales Sales EBIT
- ------------------------------- -------- ------- -------- ------
(All amounts in millions)
<S> <C> <C> <C> <C>
Residential Furnishings........ $ 485.7 $ 2.0 $ 487.7 $ 53.5
Commercial Furnishings......... 207.3 .6 207.9 31.1
Aluminum Products.............. 131.2 3.3 134.5 14.1
Industrial Materials........... 74.0 46.5 120.5 16.5
Specialized Products........... 66.9 9.5 76.4 11.5
Intersegment eliminations...... -- -- -- .8
Change in LIFO reserve......... -- -- -- 2.1
-------- ------- -------- ------
Totals..................... $ 965.1 $ 61.9 $1,027.0 $129.6
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</TABLE>
<TABLE>
<CAPTION>
Inter-
External Segment Total
Quarter Ended December 31, 1998 Sales Sales Sales EBIT
- ------------------------------- -------- ------- -------- ------
(All amounts in millions)
<S> <C> <C> <C> <C>
Residential Furnishings........ $ 441.7 $ 2.1 $ 443.8 $ 48.1
Commercial Furnishings......... 149.0 .5 149.5 25.3
Aluminum Products.............. 117.9 4.5 122.4 4.8
Industrial Materials........... 70.8 44.8 115.6 15.5
Specialized Products........... 58.3 10.7 69.0 9.2
Intersegment eliminations...... -- -- -- --
Change in LIFO reserve......... -- -- -- 3.0
-------- ------- -------- ------
Totals..................... $ 837.7 $ 62.6 $ 900.3 $105.9
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</TABLE>
Segment Results - full year
Residential Furnishings - Total sales increased 9.6%, with same location growth
of 3.5%. Numerous acquisitions accounted for the balance of the sales growth.
EBIT increased 10.8%, reflecting improved efficiencies on higher production and
acquisitions.
Commercial Furnishings - Total sales increased 25.0%, with same location growth
of 1.7%. Numerous acquisitions accounted for the balance of the sales growth.
EBIT increased 14.2%, reflecting acquisitions and the impact of lower volume in
some operations.
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Aluminum Products - Total sales increased 5.9%, with same location growth of
3.7%. Acquisitions accounted for the balance of the sales growth. EBIT increased
61.3%, reflecting improved efficiencies on higher production, more normal
cost/price relationships and acquisitions.
Industrial Materials - Total sales increased 4.7%, with same location growth of
about 1%. Acquisitions accounted for the balance of the sales growth. EBIT
increased 35.1%, reflecting reduced costs, improved efficiencies on higher
production and acquisitions.
Specialized Products - Total sales increased 14.3%, with same location growth of
3.9%. Acquisitions accounted for the balance of the sales growth. EBIT increased
19.2%, reflecting improved efficiencies and acquisitions.
<TABLE>
<CAPTION>
External Inter-Segment Total
Year Ended December 31, 1999 Sales Sales Sales EBIT
- ---------------------------- -------- ------------- --------- -------
(All amounts in millions)
<S> <C> <C> <C> <C>
Residential Furnishings........... $1,946.6 $ 9.5 $1,956.1 $219.7
Commercial Furnishings............ 778.1 2.9 781.0 126.9
Aluminum Products................. 532.8 15.6 548.4 52.6
Industrial Materials.............. 282.6 202.1 484.7 70.1
Specialized Products.............. 238.9 41.9 280.8 34.1
Intersegment eliminations......... -- -- -- (2.6)
Change in LIFO reserve............ -- -- -- 1.7
-------- ------ -------- ------
Totals.......................... $3,779.0 $272.0 $4,051.0 $502.5
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External Inter-Segment Total
Year Ended December 31, 1998...... Sales Sales Sales EBIT
- ----------------------------...... -------- ------------- --------- -------
(All amounts in millions)
Residential Furnishings........... $1,777.2 $ 6.8 $1,784.0 $198.3
Commercial Furnishings............ 623.3 1.7 625.0 111.1
Aluminum Products................. 501.1 16.8 517.9 32.6
Industrial Materials.............. 269.6 193.5 463.1 51.9
Specialized Products.............. 199.2 46.4 245.6 28.6
Intersegment eliminations......... -- -- -- (1.3)
Change in LIFO reserve............ -- -- -- 7.9
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Totals.......................... $3,370.4 $265.2 $3,635.6 $429.1
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</TABLE>
Residential Furnishings derives its revenues from components for bedding,
furniture and other furnishings, as well as related consumer products.
Commercial Furnishings derives its revenues from retail store fixtures,
displays, storage, material handling systems, and office and institutional
furnishings components. Aluminum Products revenues are derived from die
castings, custom tooling, secondary machining and coating, and smelting of
aluminum ingot. Industrial Materials derives its revenues from drawn steel wire,
specialty wire products and welded steel tubing sold to trade customers as well
as other Leggett segments. Specialized Products is a combination of non-
reportable segments which derive their revenues from machinery, manufacturing
equipment, automotive seating suspension and lumbar supports, and control cable
systems.
Financial Position
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<CAPTION>
December 31,
NET ASSETS 1999 1998
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(All amounts in millions)
<S> <C> <C>
Cash and equivalents....................... $ 20.6 $ 83.5
Receivables................................ 559.4 503.1
Inventories................................ 605.8 486.2
Other current assets....................... 70.4 64.3
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Total current assets.................... 1,256.2 1,137.1
Current debt maturities.................... 3.8 5.2
Other current liabilities.................. 427.7 396.2
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Total current liabilities............... 431.5 401.4
Working capital............................ 824.7 735.7
Net fixed assets........................... 915.0 820.4
Other assets............................... 806.3 577.8
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Total net assets........................ $2,546.0 $2,133.9
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CAPITALIZATION
Long-term debt............................. $ 787.4 $ 574.1
Deferred income taxes and other
liabilities............................. 112.4 123.0
Shareholders' equity*...................... 1,646.2 1,436.8
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Total capitalization.................... $2,546.0 $2,133.9
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</TABLE>
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*In accordance with Financial Accounting Standard No. 130, comprehensive
earnings would have been $289.8 and $239.9 for the year ending December 31, 1999
and 1998, respectively.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Leggett & Platt, Incorporated
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(Registrant)
Date February 2, 2000 /s/ Michael A. Glauber
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Senior Vice President, Finance &
Administration
(Signature)
