Leggett & Platt restructuring calls for factory closures

A restructuring plan announced today by Leggett & Platt Inc. (NYSE: LEG) calls for the consolidation of several factories.

According to a news release, the Carthage-based manufacturer is closing 15-20 bedding products plants, along with a few production facilities in other segments.

"The bedding market has experienced unprecedented change in recent years and the competitive landscape has continued to evolve," President and CEO Mitch Dolloff said in the release. "Reshaping our bedding products strategy is expected to better position us for long-term success as the leading provider of bedding solutions across the value chain."

The plan calls for the reduction of the bedding products' manufacturing and distribution footprint of 50 facilities to 30-35 locations. The company had 135 manufacturing facilities across all of its segments in 18 countries at the end of the third quarter, according to past reporting.

Leggett & Platt additionally disclosed in a U.S. Securities and Exchange Commission filing that it would implement workforce reductions to the tune of 900 to 1,100 as it consolidates the facilities.

Leggett & Platt's restructuring plan also includes the consolidation of "a small number of production facilities" within its furniture, flooring and textile products segment, officials said in the release.

Officials with the company say up to $800 million in net cash proceeds are expected from the sale of real estate. With benefits of the plan to be realized starting in the second half of 2024, the company is expecting restructuring-related costs of $65 million to $85 million and an annual reduction in sales of roughly $100 million.

The company's fourth-quarter report is scheduled for release Feb. 8. In the third quarter, Leggett & Platt's profits were $52.8 million and sales were $1.2 billion.

LEG shares were trading at $23.10 as of 11:35 a.m., compared with a 52-week range of $22.50 to $38.55 per share.