Leggett & Platt shares set for worst day on record after dividend slash
01/05/2024 15:35
** Shares of diversified manufacturer Leggett & Platt
LEG.N slump 30.4% to $12.75 after Q2 dividend cut, earnings
disappointment
** LEG, trading at its lowest level since 2009, is set for
biggest pct drop on record, if losses hold
** The maker of bedding, furniture and flooring products
cuts Q2 dividend by $0.41 to $0.05 from the year-ago quarter
** Dividend to be paid on July 15, 2024
** "We are reducing the dividend to free up capital to
accelerate deleveraging of our balance sheet and solidify our
long-held financial strength" - CEO Mitch Dolloff
** Company's Q1 sales down 10% at $1.1 bln due to hit from
weak demand in residential end markets
** Q1 adj EPS of 23 cents also down from 39 cents a year ago
** Company says it expects to incur about half of costs
related to restructuring of bedding as well as furniture,
flooring and textile segments in 2024
** LEG had a short interest of 6.5% as of April 15 - LSEG
data
** Including Wednesday's drop, stock down ~53% YTD
(Reporting by Sruthi Shankar in Bengaluru)
((sruthi.shankar@thomsonreuters.com))