Leggett & Platt(LEG) - 2025 Q2 - Quarterly Report

Forward-Looking Statements Overview of Forward-Looking Statements This section outlines forward-looking statements regarding financial projections, restructuring impacts, and the Aerospace Products Group sale, all subject to material risks and uncertainties - The report contains forward-looking statements covering projections for revenue, income, earnings, capital expenditures, dividends, product demand, capital structure, cash flows, interest costs, and the payment of cash dividends[8] - Statements also include estimates related to the 2024 Restructuring Plan (facility closures, costs, impairment charges, sales reduction, proceeds from asset sales, and EBIT benefit) and the net positive impact of tariffs[8] - All forward-looking statements are subject to risks, uncertainties, and developments that might cause actual events or results to differ materially from those envisioned[9] Key Risks and Uncertainties This section details key risks such as sale termination, restructuring changes, tariff impacts, supply chain disruptions, and market access - Risk of termination or delays in the sale of the Aerospace Products Group, including regulatory approvals and financing[10] - Potential changes to the 2024 Restructuring Plan, affecting costs, benefits, sales attrition, and real estate sales[10] - Impact of tariffs (U.S. and retaliatory) on product demand, profit margins, and earnings, including changes to USMCA exemptions[10] - Supply chain disruptions due to various factors like geopolitical conflicts, labor strikes, and vendor quality issues[11] - Ability to access commercial paper and debt markets, and compliance with credit facility covenants[11] - Impairment of goodwill and long-lived assets, and volatility in the automotive industry due to Chinese EV manufacturers[11] - Cybersecurity incidents, unauthorized use of AI, and physical effects of climate change on operations and supply chains[11] PART I - FINANCIAL INFORMATION Item 1. Financial Statements. This section presents unaudited consolidated condensed financial statements, including balance sheets, statements of operations, cash flows, and equity changes, with detailed notes Consolidated Condensed Balance Sheets Consolidated Condensed Balance Sheets (Amounts in millions) | (Amounts in millions) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | ASSETS | | | | Cash and cash equivalents | $368.8 | $350.2 | | Trade receivables, net | $542.2 | $503.0 | | Inventories | $648.6 | $722.6 | | Total current assets | $1,742.7 | $1,690.5 | | Net property, plant and equipment | $686.4 | $724.4 | | Goodwill | $751.2 | $794.4 | | Total assets | $3,703.7 | $3,661.6 | | LIABILITIES AND EQUITY | | | | Total current liabilities | $802.3 | $846.4 | | Long-term debt | $1,792.2 | $1,862.8 | | Total liabilities | $2,045.6 | $2,125.0 | | Total equity | $855.8 | $690.2 | | Total liabilities and equity | $3,703.7 | $3,661.6 | - Total assets increased by $42.1 million from December 31, 2024, to June 30, 2025[13] - Total equity increased by $165.6 million, while total liabilities decreased by $79.4 million over the same period[13] Consolidated Condensed Statements of Operations Consolidated Condensed Statements of Operations (Amounts in millions, except per share data) | (Amounts in millions, except per share data) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :----------------------------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Net trade sales | $2,080.1 | $2,225.5 | $1,058.0 | $1,128.6 | | Gross profit | $382.6 | $372.9 | $192.6 | $186.5 | | Impairments | $1.2 | $677.9 | $0.9 | $675.6 | | Earnings (loss) before interest and income taxes | $153.3 | $(551.3) | $90.4 | $(614.3) | | Net earnings (loss) attributable to Leggett & Platt, Inc. common shareholders | $83.1 | $(570.6) | $52.5 | $(602.2) | | Basic EPS | $0.60 | $(4.16) | $0.38 | $(4.39) | - Net trade sales decreased by 6.5% for the six months ended June 30, 2025, compared to the same period in 2024[15] - Net earnings significantly improved from a loss of $(570.6) million in H1 2024 to a gain of $83.1 million in H1 2025, primarily due to the non-recurrence of large impairment charges[15] - Basic EPS increased from $(4.16) in H1 2024 to $0.60 in H1 2025[15] Consolidated Condensed Statements of Comprehensive Income (Loss) Consolidated Condensed Statements of Comprehensive Income (Loss) (Amounts in millions) | (Amounts in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | :------------------------------- | :------------------------------- | | Net earnings (loss) | $83.1 | $(570.5) | $52.5 | $(602.1) | | Other comprehensive income (loss), net of tax | $82.9 | $(43.4) | $59.6 | $(18.6) | | Comprehensive income (loss) | $166.0 | $(613.9) | $112.1 | $(620.7) | - Comprehensive income significantly improved from a loss of $(613.9) million in H1 2024 to a gain of $166.0 million in H1 2025[18] - Foreign currency translation adjustments shifted from a loss of $(40.9) million in H1 2024 to a gain of $81.9 million in H1 2025[18] Consolidated Condensed Statements of Cash Flows Consolidated Condensed Statements of Cash Flows (Amounts in millions) | (Amounts in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net Cash Provided by Operating Activities | $90.8 | $87.9 | | Net Cash Provided by (Used for) Investing Activities | $10.3 | $(18.6) | | Net Cash Used for Financing Activities | $(93.8) | $(117.1) | | Increase (Decrease) in Cash and Cash Equivalents | $18.6 | $(58.5) | | Cash and Cash Equivalents—June 30, | $368.8 | $307.0 | - Net cash provided by operating activities increased by $2.9 million (3.3%) in H1 2025 compared to H1 2024[21] - Investing activities shifted from a net cash outflow of $(18.6) million in H1 2024 to a net cash inflow of $10.3 million in H1 2025, driven by higher proceeds from disposals of assets and businesses[21] - Cash and cash equivalents increased by $18.6 million in H1 2025, contrasting with a decrease of $(58.5) million in H1 2024[21] Consolidated Condensed Statements of Changes in Equity Consolidated Condensed Statements of Changes in Equity (Amounts in millions) | (Amounts in millions) | Total Equity (June 30, 2025) | Total Equity (December 31, 2024) | | :-------------------- | :--------------------------- | :------------------------------- | | Beginning balance, January 1, 2025 | $690.2 | $1,334.0 (Jan