Leggett & Platt profit rises on cost-cutting

Furniture parts maker Leggett & Platt reports higher profit on cost-cutting measures

• On 8:19 pm EDT, Thursday October 22, 2009

CARTHAGE, Mo. (AP) -- Cost-cutting efforts helped furniture parts maker Leggett & Platt Inc. boost profit in the third quarter despite a big drop in sales.

The company on Thursday also raised its full-year profit forecast.

Leggett & Platt makes parts for furniture and mattresses. Sales of household goods have been hurt by the recession and the slump in the housing market. The company said demand remained weak but stable across its businesses.

Leggett said it earned $54.3 million, or 34 cents per share, in the third quarter, up from $32.7 million, or 20 cents per share, a year ago.

Revenue tumbled 28 percent to $810 million. But the company slashed overhead, booked a $16 million inventory-valuation gain, and bought back its own stock to boost earnings per share.

Analysts had expected profit of 28 cents per share on slightly higher sales of $838.5 million, according to Thomson Reuters.

Shares of the Carthage, Mo.-based company closed earlier up 15 cents at $19.41.