Leggett & Platt(US:LEG)2023-05-04 19:12Financial Performance - Trade sales for the first quarter of 2023 were $1,214 million, a decrease of 8% compared to the first quarter of 2022[71]. - EPS for the first quarter of 2023 was $0.39, down from $0.66 in the same period of 2022[71]. - EBIT for the first quarter of 2023 was $89 million, a decrease of $48 million compared to the same period in 2022[71]. - Trade sales for the first three months of 2023 were $1,214 million, an 8% decrease compared to the same period last year, with organic sales down 11%[111]. - EBIT decreased by 35% to $89 million, primarily due to lower volume and lower metal margin in the Steel Rod business[112]. - EPS for the first quarter of 2023 was $0.39, down from $0.66 in the same period of 2022, reflecting lower EBIT[112]. - The worldwide effective tax rate for the first quarter of 2023 was 22%, compared to 23% for the same quarter last year[114]. Cash Flow and Working Capital - Operating cash flow increased by $58 million to $97 million in the first quarter of 2023 compared to the same period of 2022[72]. - Cash from operations for the three months ended March 31, 2023, was $97 million, an increase of $58 million from the same period last year[125]. - Adjusted working capital as a percentage of annualized trade sales was 15.8% for the first quarter of 2023, compared to 15.3% for the fourth quarter of 2022[127]. - Trade receivables increased, with DSO rising compared to December 31, 2022, primarily due to sales growth in the Specialized segment and seasonality effects[130]. - Approximately $50 million of trade receivables were sold as of March 31, 2023, reducing quarterly DSO by roughly four days[134]. Segment Performance - The Bedding Products segment contributed 44% of trade sales in the first three months of 2023[77]. - The Specialized Products segment contributed 26% of trade sales in the first three months of 2023[78]. - The Furniture, Flooring & Textile Products segment contributed 30% of trade sales in the first three months of 2023[79]. - Bedding Products trade sales decreased by $111 million, or 17%, with organic sales also down 17%[119]. - Specialized Products trade sales increased by $57 million, or 21%, driven by volume growth of 11% and raw material-related selling price increases of 2%[120]. - Furniture, Flooring & Textile Products trade sales decreased by $54 million, or 13%, with organic sales down 15%[122]. Debt and Capital Expenditures - Total debt outstanding is $2.1 billion, with $9 million due within 12 months and the remainder maturing through 2051[139]. - Capital expenditures are expected to be between $100 million and $130 million in 2023, with $38 million spent as of March 31, 2023[141]. - The company has a $1.2 billion commercial paper program, with $317 million outstanding as of March 31, 2023[137]. Dividends and Share Repurchases - A quarterly dividend of $0.44 per share was declared, representing a 4.8% increase compared to the first quarter of 2022[142]. - Share repurchases totaled 0.1 million shares at an average price of $34.04 during the first quarter of 2023[145]. Market Conditions and Expectations - The company expects overall demand in 2023 to be slightly lower than levels experienced in 2022 due to macroeconomic pressures[87]. - The company has experienced fluctuations in raw material costs, particularly steel, which significantly impacts earnings and pricing strategies[88][90]. Assets and Liabilities - The company had cash and cash equivalents of $345 million as of March 31, 2023, primarily held in interest-bearing accounts[123]. - Inventories and DIO decreased as of March 31, 2023, compared to both December 31, 2022, and March 31, 2022, due to reductions to support current demand[131]. - Accounts payable increased while DPO remained flat as of March 31, 2023, primarily due to the timing of steel scrap purchases[133]. - As of March 31, 2023, goodwill and other intangible assets represented $2.1 billion, or 40% of total assets[173]. Corporate Governance and Compliance - The company has a formal process for incident response and cybersecurity continuous improvement, with a Cybersecurity Oversight Committee updating the Board quarterly[170]. - The company has not experienced material climate-related compliance costs to date, but is evaluating opportunities to reduce its carbon footprint[167]. - The company expects to publish its ESG objectives, goals, and targets, including climate-related goals in 2023 or the first half of 2024[168]. Miscellaneous - The company did not acquire any businesses in the first three months of 2023 or 2022, with minimal acquisition activity expected for the full year[144]. - The company has approximately 135 production facilities in 18 countries, primarily located in North America, Europe, and Asia[160]. - The company has issued accounting guidance effective for the current and future periods[180]. - The company has not independently verified data from industry analyses and cannot guarantee their accuracy or completeness[184].