FLXS Flexsteel Industries Inc

Leggett & Platt Inc. (LEG) now expects its earnings per share for full-year 2011 in the range of 99 cents to $1.04, due to a non-cash and pre-tax charge of nearly $36 million planned in the fourth quarter of 2011. The charge is expected to mainly relate to restructuring activity, including the discontinuation of some manufacturing facilities.

The Carthage, Missouri-based company said the restructuring mainly comprises of closure of four underperforming manufacturing facilities. Leggett & Platt embarked on the restructuring plan due to the continued demand weakness seen in certain markets, which led it to conclude that the headwinds for the U.S. economy will extend beyond its previous expectation.

As part of the restructuring, the manufacturing company is in the process of closing some production facilities and is also taking steps to trim costs. However, the company’s operational results are expected to be at par with the forecasts in the company’s October release.

The $36 million charge, per the company, should lower its 2011 after-tax earnings by roughly 16 cents per share. However, excluding these charges, the company’s previous provided guidance range of $1.15 to $1.20 remains unchanged.

Moreover, Leggett & Platt expects these restructuring-related activities to boost its 2012 EPS by nearly 7 - 10 cents.

Leggett & Platt Inc., the manufacturer of diversified engineered products and components, is scheduled to release its fourth quarter and full-year 2011 financial results on February 6, 2012. The Zacks consensus estimates for the fourth quarter and full-year 2011 remain 21 cents and $1.19 per share, respectively.

Leggett & Platt faces stiff competition from its rivals, such as Flexsteel Industries Inc. (FLXS), Genuine Parts Company (GPC) and Steelcase Inc. (SCS). The company currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. However, our long-term recommendation on the stock remains Underperform.

 
GENUINE PARTS (GPC): Free Stock Analysis Report
 
LEGGETT & PLATT (LEG): Free Stock Analysis Report
 
STEELCASE INC (SCS): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research