CARTHAGE, Mo., April 2, 2020 /PRNewswire/ --
- Withdraws 2020 Guidance
- Solid Balance Sheet and Liquidity Profile
- Limits format of Annual Shareholders Meeting
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.
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FOR MORE INFORMATION: Visit Leggett's website at
www.leggett.com.
COMPANY DESCRIPTION: 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 137-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 140 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; and g) bedding
industry machinery.
FORWARD-LOOKING STATEMENTS: This press release contains
"forward-looking statements," including our ability to meet current
liquidity needs from operating cash flow and access to the
commercial paper market, our ability to reduce expenses, manage
costs, and reduce or defer capital spending, as well as manage
working capital, our ability to maintain the strength of our
portfolio of businesses, balance sheet and access to capital, and
our ability to achieve long-term success. These statements
are identified either by the context in which they appear or by use
of words such as "expect," "believe," "plan" or the like. Such
forward-looking statements are expressly qualified by the
cautionary statements described in this provision and reflect only
the beliefs of Leggett or its management at the time the statement
is made. Because all forward-looking statements deal with the
future, they are subject to risks, uncertainties and developments
which might cause actual events or results to differ materially
from those envisioned or reflected in any forward-looking
statement. Moreover, we do not have, and do not undertake, any duty
to update or revise any forward-looking statement to reflect events
or circumstances after the date on which the statement was made.
Some of these risks and uncertainties include: (i) the impact on
the Company's business resulting from the respiratory illness known
as COVID-19 including a negative impact on our earnings, cash flow,
financial condition and reduced demand for our products, shutdowns
of our manufacturing facilities due to declining demand,
governmental orders and/or concerns over employee safety, our
manufacturing facilities' ability to remain open, obtain necessary
raw materials and parts, maintain appropriate labor levels and ship
finished products to customers, increased operating costs related
to pay and benefits for our employees, the collection of trade and
other notes receivables in accordance with their terms and our
ability to access the commercial paper market; (ii) the Company's
ability to achieve its operating targets; (iii) inability to comply
with the restrictive covenants in the Company's credit agreement
and the impact on our liquidity; (iv) increases or decreases in our
capital needs, which may vary depending on acquisition or
divestiture activity, our working capital needs and capital
expenditures; (v) market conditions; (vi) price and product
competition from foreign and domestic competitors, changes in cost
and availability of raw materials and labor, fuel and energy costs,
our ability to increase the dividend, our ability to repatriate
cash from offshore accounts, net interest expense, tax rates,
increased trade costs, cybersecurity breaches, customer losses and
insolvencies, disruption to our steel rod mill, climate change
regulations, environmental, social and governance risks, general
economic conditions, possible goodwill or other asset impairment,
foreign currency fluctuation, the amount of fully diluted shares,
depreciation and amortization, and litigation risks; and (vii)
other risk factors in the "Forward-Looking Statements" and "Risk
Factors" sections in Leggett's most recent Form 10-K and subsequent
Form 10-Q and Form 8-K reports filed with the SEC.
CONTACT: Investor Relations,
(417) 358-8131 or invest@leggett.com
Susan R. McCoy, Senior Vice
President, Investor Relations
Wendy M. Watson, Vice President,
Investor Relations
Cassie J. Branscum, Manager,
Investor Relations
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SOURCE Leggett & Platt