Leggett & Platt, Incorporated (NYSE:LEG) Q4 2018 Earnings Conference Call Transcript

Feb 05, 2019 • 08:30 am ET

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Leggett & Platt, Incorporated (NYSE:LEG) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Leggett & Platt Incorporated Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder this conference is being recorded.

It is now my pleasure to introduce your host, Ms. Wendy Watson, Director of Investor Relations. Thank you, Ms. Watson. You may begin.

Executive
Wendy M. Watson

Good morning, and thank you for taking part in Leggett & Platt's fourth quarter conference call. I'm Wendy Watson. With me today are Karl Glassman, President and CEO; Matt Flanigan, EVP and Chief Financial Officer; Mitch Dolloff, EVP, Chief Operating Officer and President of the Furniture Products and Specialized Products segment; Perry Davis, EVP and President of the Residential Products and Industrial Products segment; and Cassie Branscum, Manager of IR.

The agenda for our call this morning is as follows; Karl Glassman will start with a summary of the major statements we made in yesterday's press release; Matt, will discuss financial details and address our outlook for 2019; and finally, the group will answer any questions that you have.

This conference call is being recorded for Leggett & Platt and is copyrighted material. This call may not be transcribed, recorded or broadcast without our expressed permission. A replay is available from the IR portion of Leggett's website. We posted to the Investor Relations portion of the website yesterday's press release and a set of PowerPoint slides that contain summary financial information along with segment details. Those documents supplement the information we discuss on this call, including non-GAAP reconciliations.

I need to remind you that remarks today concerning future expectations, events, objectives, strategies, trends or results constitute forward-looking statements. Actual results or events may differ materially due to a number of risks and uncertainties, and the Company undertakes no obligation to update or revise these statements. For a summary of these risk factors and additional information, please refer to yesterday's press release in the section in our 10-K and 10-Qs entitled forward-looking statements.

I'll now turn the call over to Karl.

Executive
Karl G. Glassman

Good morning and thank you for participating in our fourth quarter call. First, I would like to thank our dedicated fellow employees around the world for your efforts during this past year. They are very much appreciated. We are pleased with our 2018 operational performance despite the challenges we faced in some of our businesses, most notably Home Furniture and Fashion Bed. Fourth quarter sales increased 6% to $1.05 billion on flat volume. Raw material related price increases net of currency impact added 3% to sales growth and acquisitions also added 3%.

Fourth quarter earnings per share from continuing operations were $0.39. This includes several items outlined in yesterday's press release that amount to a $0.23 per share reduction in earnings. Excluding these items adjusted fourth quarter earnings increased 5% to $0.62 per share from $0.59 last year. This increase is primarily due to the improved metal margins in our Steel Rod business. In