Leggett & Platt Provides Update in Response to COVID-19 Impact
Diversified manufacturer Leggett & Platt provided an update on actions it is taking in response to the impact of the COVID-19 pandemic on its business.
Chairman and CEO Karl Glassman commented, “Our first priority is the health and safety of our employees and their families, along with our customers and suppliers, and the communities we serve around the world. We have instituted social distancing and robust health and hygiene practices in our facilities, and our employees are working remotely where possible. We are also continuing to restrict travel for all employees. We are monitoring the situation closely on an ongoing basis and will take further action as appropriate.”
Given the rapidly changing environment, the Company is withdrawing its 2020 guidance issued February 3, which did not include possible impacts from COVID-19. The Company will provide more detail on the impact from COVID-19 across its operations when it reports first quarter 2020 earnings on May 4.
To date, Leggett has experienced significant reductions in demand in many of its markets. The Company has temporarily closed some facilities due to declining demand, government orders and/or concerns over employee safety.
Leggett remains intently focused on and committed to balance sheet strength. The Company expects to meet its current liquidity needs from operating cash flow and its access to the commercial paper market. The Company has no significant debt maturities until August 2022. Additionally, Leggett is taking the necessary steps to reduce expenses, manage costs, and reduce or defer capital spending. The Company continues to closely manage its working capital.
The Company also announced that due to health concerns associated with the COVID-19 outbreak, it will limit the Annual Shareholders Meeting to only the formal business meeting as described in the agenda in the Company’s Proxy Statement dated March 31, 2020. The Company does not plan to make traditional product or any other presentations.
Leggett has successfully navigated several challenging business and economic conditions in its 137-year history. With its diversified businesses, solid balance sheet, and access to capital the Company continues to believe it is well-positioned for long-term success as it manages through this latest challenge.
About Leggett & Platt
At Leggett & Platt (NYSE: LEG), we create innovative products that enhance people’s lives, generate exceptional returns for our shareholders, and provide sought-after jobs in communities around the world. L&P is a 136-year-old diversified manufacturer that designs and produces engineered products found in most homes and automobiles. The Company is comprised of 15 business units, 22,000 employee-partners, and 145 manufacturing facilities located in 18 countries. Leggett & Platt is the leading U.S.-based manufacturer of: a) bedding components; b) automotive seat support and lumbar systems; c) specialty bedding foams and private-label finished mattresses; d) components for home furniture and work furniture; e) flooring underlayment; f) adjustable beds; g) high-carbon drawn steel wire; and h) bedding industry machinery.
Susan R. McCoy – Senior Vice President of Investor Relations – email@example.com – (417) 358-8131
Source: Leggett & Platt, Incorporated