Leggett & Platt Lowers FY22 Outlook; Stock Slips 8%

(RTTNews) - Shares of Leggett & Platt Inc. (LEG) slipped over 8% in extended trading session on Monday after the company lowered its financial outlook for the full year 2022, due to challenging "global economic environment and consumer backdrop."

Leggett & Platt lowered its full-year sales guidance to $5.1 billion to $5.2 billion, from prior guidance of $5.2 billion to $5.4 billion. Earnings is now expected to be $2.30 to $2.45 per share, down from prior estimate of $2.65 to $2.80 per share.

Based upon this guidance, the company now expects EBIT margin to be 9.5% to 10.0%, down from prior estimate of 10.5% to 10.7%.

Cash from operations are expected to be $400 million to $450 million, down from prior estimate of $550 million to $600 million.

President and CEO Mitch Dolloff commented, "The increasingly challenged global economic environment and consumer backdrop is expected to result in lower than previously anticipated sales and earnings in the third and fourth quarters of 2022. Demand in the U.S. bedding market is fairly stable but remains at relatively weak levels as industry headwinds persist, including inflationary and monetary policy impacts on consumer spending and consumer sentiment as well as higher inventory levels. Given the bedding demand environment and slowing market for steel generally, we are cutting production in our Rod and Wire businesses to reduce inventory."

LEG closed Monday's trading at $34.68, up $0.41 or 1.20%, on the NYSE. The stock, however, slipped $2.95 or 8.51% in the after-hours trading.