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Leggett & Platt Reports Record 1Q EBIT And EPS ; Increases 2Q Dividend leggett.gcs-web.com/news-releases/news-release-details/leggett-platt-reports-record-1q-ebit-and-eps-increases-2q Press Release View printer - friendly version << Back CARTHAGE , Mo. , May 3 , 2021 / PRNewswire / -- • 1Q sales increased 10 % vs 1Q20 , to $ 1.151 billion • 1Q EPS was a first quarter record $ .64 , an increase of $ .31 vs 1Q20 and an increase of $ .24 vs adjusted¹ EPS in 1Q20 • Board of Directors increased second quarter dividend $ .02 to $ .42 per share • Increased 2021 guidance : sales of $ 4.8- $ 5.0 billion and EPS of $ 2.55- $ 2.75 Changed methodology for valuing domestic steel - related inventory from LIFO to FIFO Diversified manufacturer Leggett & Platt reported first quarter 2021 sales of $ 1.151 billion , a 10 % increase versus first quarter last year . Organic sales were up 11 % o Volume was up 4 % ; strong demand in residential end markets and Automotive was partially offset by weakness in Aerospace o Raw material - related selling price increases of 5 % and currency benefit of 2 % added to sales growth • Divestitures reduced sales by 1 % ( small operations in Drawn Wire and former Fashion Bed business ) First quarter EBIT was $ 128 million , a first quarter record . EBIT increased $ 49 million or 62 % from first quarter 2020 , and up $ 37 million or 41 % from first quarter 2020 adjusted¹ EBIT . ● Fixed cost reductions implemented in 2020 reduced 1Q 2021 costs by approximately $ 20 million • EBIT margin was 11.1 % , up from 7.5 % in the first quarter of 2020 and up from an adjusted¹ EBIT margin of 8.7 % in that same period EBIT benefited primarily from volume growth , lower fixed costs , and the non - recurrence of an $ 8 million impairment charge related to a note receivable and a $ 4 million charge to write off stock associated with a prior year divestiture in first quarter 2020 First quarter EPS was $ .64 , also a first quarter record . EPS increased $ .31 versus first quarter 2020 and $ .24 versus adjusted¹ EPS in first quarter 2020. Improved EBIT was the primary driver of the increase , augmented by a lower tax rate ( $ .02 per share ) and lower interest expense ( $ .01 per share ) . LIFO Effective January 1 , 2021 , the Company changed its accounting methodology for valuing its domestic steel - related inventory from a last - in , first - out ( LIFO ) basis to a first - in , first - out ( FIFO ) basis . All prior periods presented have been retrospectively adjusted to apply the effects of the change . CEO COMMENTS Chairman and CEO Karl Glassman commented , " We had a very strong start to the year , delivering better - than - expected first quarter results thanks to the efforts of an incredible team of more than 20,000 employees who remain focused on servicing our customers and keeping each other safe . We generated record first quarter EBIT , EBITDA , and EPS . Our results demonstrate our agility and resilience in dealing with inflationary pressure and supply chain constraints . Strong demand combined with our disciplined cost control provides us confidence to raise our full year guidance . " We are also very pleased to be increasing our dividend for the 50th consecutive year , honoring our ongoing commitment to return value to our shareholders . As a result of this commitment over many decades , next year we will become a member of a select group of companies referred to as Dividend Kings . " Lastly , we're proud to have issued our inaugural Sustainability Report last month , which signifies our commitment to further enhance responsible environmental , social , and governance ( ESG ) practices across our global operations . " DEBT , CASH FLOW , AND LIQUIDITY • Net Debt was 2.46x trailing 12 - month adjusted¹ EBITDA Operating cash flow was a negative $ 11 million in the first quarter , a decrease of $ 21 million versus first quarter 2020 , primarily from working capital investments to support growth and inflationary impact , which more than offset higher earnings Capital expenditures were $ 24 million • Total liquidity was $ 1.4 billion ● ● DIVIDEND • The Company's Board of Directors increased second quarter dividend to $ .42 • Dividend will be paid on July 15 , 2021 to shareholders of record on June 15 , 2021 • At an annual indicated dividend of $ 1.68 per share , the yield is 3.4 % based upon Friday's closing stock price of $ 49.67 per share , one of the higher yields among the S & P 500 Dividend Aristocrats 2021 GUIDANCE 1/10