Leggett & Platt Cuts FY22 Guidance Citing Macroeconomic Uncertainties

Leggett & Platt Inc LEG reported second-quarter FY22 sales growth of 5% year-on-year to $1.33 billion, in line with the consensus. Organic sales rose 5%.
Trade sales from Bedding products rose 1% Y/Y to $612.5 million, Specialized Products increased 8% to $260.1 million, and Furniture, Flooring & Textile Products rose 10% to $461.6 million.
Gross profit for the quarter was $268.4 million, with a profit margin of 20.1%.
The company held $269.9 million in cash and equivalents as of June 30, 2022. Net cash from operating activities in the quarter jumped 119.5% Y/Y to $90 million.
EBITDA fell 2% Y/Y to $187.5 million, and the adjusted EBITDA margin contracted 100 basis points Y/Y to 14.1%.
EPS of $0.70 matched the consensus of $0.70.
"We are lowering our full-year guidance to reflect macroeconomic uncertainties including impacts of inflation, tightening monetary policy, and softening consumer demand continuing through the back half of the year," said President and CEO Mitch Dolloff.
Outlook: Leggett lowered FY22 sales guidance to $5.2 billion - $5.4 billion from $5.3 billion - $5.6 billion, against the consensus of $5.3 billion.
The company cut FY22 EPS outlook to $2.65 - $2.80 from $2.70 - $3.00, versus the consensus of $2.72.
Price Action: LEG shares are trading lower by 1.19% at $39.00 in premarket on the last check Tuesday.

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