Missouri, US – Weak demand in residential markets contributed to an 8% decline in sales at Leggett & Platt in 2023, dropping to $4.7bn. EBIT fell into negative territory, down 118% from 2022’s $485m to a loss of $90m in 2023. This steep decline was largely caused by a $444m asset impairment charge relating to prior year acquisitions in the bedding products business in the fourth quarter.
In the quarter, the fall in sales was marginally less pronounced, being down 7% to $1.1bn. EBIT fell to a loss of $367m after the impairment charge, a $468m drop from the $91m profit achieved in 2022. Volume was down by 3%, and selling prices related to raw materials cut sales by 5%.
In the quarter, trade sales of bedding products fell by 14%. Volume decreased by 6% in the light of continued demand softness in both the US and European bedding markets.
“2023 was another challenging year for residential end markets as our bedding products and furniture, flooring & textile products segments faced ongoing weak market demand,” said Mitch Dolloff, the company’s president and CEO.
He added that the restructuring plan announced in January, primarily in its bedding products segment, is designed to create a more focused, agile organisation. “Looking forward, these initiatives are expected to enable us to advance key product growth, improve profitability, and create enhanced value for our customers and shareholders,” he said.
Guidance for 2024 reflects continuing soft demand in residential end markets. The company is anticipating sales will fall in the range $4.35-$4.65bn, a drop of between 2% and 8% on the 2023 figures. Volume is expected to be down high single digits in the bedding products business.
