LEGGETT & PLATT INC (LEG): restructuring charge — Leggett & Platt announces restructuring, $450M impairment, withdraws long-term targets

LEGGETT & PLATT INC

Restructuring plan consolidates 15-20 of 50 Bedding facilities; cuts 900-1,100 jobs; targets $40-50M annualized EBIT by late 2025.
Total restructuring costs $65-85M ($30-40M cash); expects $60-80M from real estate sales; annual sales fall ~$100M.
Non-cash impairment charge of ~$450M in Q4 2023 for Bedding intangibles from prior acquisitions, due to weak demand and customer instability.
Company withdraws long-term financial targets including TSR goal of 11-14%, revenue growth, EBIT margin, and dividend payout ratio.
Restructuring mostly complete by end of 2025; initial benefit expected in H2 2024.

item 2.02 item 2.06 item 2.05 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Earnings Releases SEC 8-K Item 2.02 confidence 0.9

LEGGETT & PLATT INC reported preliminary financial results for the completed fourth quarter and year-end 2023.

Period: the completed fourth quarter and year-end 2023
Result: preliminary results

Exact text from the filing

The Company is not otherwise updating guidance for, or reporting upon, its 2023 year-end financial results. These financial results will be released on February 8, 2024.

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

LEGGETT & PLATT INC announced a impairment with charges of approximately $450 million affecting Bedding Products segment.

Type: impairment
Charge: approximately $450 million
Affected area: Bedding Products segment

Exact text from the filing

we concluded, on January 12, 2024 that the Company will record an estimated pre-tax impairment charge of approximately $450 million related to long-lived assets (primarily the intangibles).

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

LEGGETT & PLATT INC announced a restructuring with charges of $65 to $85 million affecting Bedding Products segment (900 to 1,100).

Type: restructuring
Charge: $65 to $85 million
Affected area: Bedding Products segment
Headcount: 900 to 1,100

Exact text from the filing

Plan. These transactions are expected to be largely complete by the end of 2025. In aggregate, we expect to incur restructuring and restructuring-related costs between $65 and $85 million, of which approximately half are anticipated to be incurred in 2024 and the remainder in 2025. This includes $30 to $40 million in cash costs, the majority of

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Source: SEC EDGAR

accession 0001193125-24-008057

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