The following is a summary of the Leggett & Platt, Incorporated (LEG) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Reported Q1 2024 sales of $1.1 billion, a decrease of 10% primarily due to volume declines in residential end markets and raw material-related selling price decreases.

• Q1 2024 EBIT of $63 million, down from Q1 2023 by $26 million.

• Earnings per share for Q1 2024 decreased 41% to $0.23 from Q1 2023 EPS of $0.39.

• The company modified its leverage ratio from 3.5 to 4 times through June 30, 2025, aiming for long-term leverage of 2 times net debt to adjusted EBITDA.

• Declared a quarterly dividend of $0.05 per share, a reduction to free up capital for investment in improving the company.

Business Progress:

• Implemented a restructuring plan to optimize manufacturing and distribution footprint, closing four smaller US spring distribution facilities and transitioning manufacturing activity.

• Evaluating efficiency improvement opportunities and options to leverage automation and vertical integration, with focus on automotive operations.

• Plans to invest in key areas such as Bedding, Automotive, and geo-components.

• Continues to face challenges due to overcapacity and increased competition, leading to a decrease in Innerspring foam volume by 15%.

• Despite the challenges, restructuring initiatives are aiding the company, with less severe sales attrition than initially estimated.

• Has started investing heavily in differentiated product offerings and seeking cost solutions to support customers.

• Making efforts to diversify into other markets, including industrial markets.

• Further evaluation of administrative costs and overall business portfolio is underway for streamlining processes, eliminating duplicate activities, and reducing IT system costs.

More details: Leggett & Platt IR

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