US' Leggett & Platt projects sales of $4.8-$5.2 bn in FY23

The company anticipates that acquisitions completed in 2022 will add approximately 3 per cent to its sales. Despite these acquisitions, raw material-related price decreases and currency impacts will likely reduce sales by mid-single digits. The EPS is projected to be between $1.50 and $1.90, which reflects a mid-teens decrease in metal margins, lower volume in some businesses, and moderate pricing pressure from deflation, Leggett & Platt said in a press release.

In FY23, the company’s EBIT margin is expected to be between 7.5 per cent to 8 per cent. Additionally, Leggett & Platt expects depreciation and amortisation to be approximately $200 million, net interest expense to be around $85 million, and an effective tax rate of 24 per cent. The fully diluted shares are expected to be 137 million. The company predicts that operating cash flow will range from $450 to $500 million, capital expenditures to be between $100 and $130 million, and dividends to be around $240 million.

"Our diverse portfolio of businesses, our solid financial position, and the ingenuity and agility of our employees continue to help us navigate challenging markets. We are focused on improving the things that we can control and continuing to mitigate the macroeconomic impacts on our business. We are working with our customers on new product opportunities, continuing our focus on improving operating efficiency, and driving strong cash management. Our financial discipline allows us to withstand periods of economic uncertainty and enables us to manage our company for long-term success," Mitch Dolloff, CEO and president.

Fibre2Fashion News Desk (DP)