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Leggett & Platt Reports Record 2Q Results leggett.gcs-web.com/news-releases/news-release-details/leggett-platt-reports-record-2q-results Press Release View printer - friendly version << Back CARTHAGE , Mo. , Aug. 2 , 2021 2Q sales were a quarterly record¹ $ 1.27 billion , a 50 % increase vs 2Q20 2Q EBIT was $ 172 million , an increase of $ 149 million vs 2Q20 • 2Q record adjusted² EBIT was $ 144 million , up $ 94 million vs 2Q20 • 2Q EPS was $ .82 , up $ .87 vs 2Q20 ; 2Q adjusted² EPS was $ .66 , up $ .51 vs 2Q20 adjusted² EPS Acquired Kayfoam , an Ireland - based provider of specialty foam and finished mattresses • Increasing 2021 guidance : sales of $ 4.9- $ 5.1 billion ; EPS of $ 2.86- $ 3.06 ; adjusted² EPS of $ 2.70- $ 2.90 Diversified manufacturer Leggett & Platt reported record¹ quarterly sales in second quarter of $ 1.27 billion , a 50 % increase versus second quarter last year . ● Organic sales were up 50 % o Volume was up 31 % , reflecting strong recovery in most of our businesses and increased demand versus 2Q 2020 , which was significantly impacted by the COVID - 19 pandemic o Raw material - related selling price increases of 16 % and currency benefit of 3 % added to sales growth Acquisitions and divestitures offset each other Second quarter EBIT was $ 172 million , up $ 149 million from second quarter 2020. Adjusted² EBIT was $ 144 million , a second quarter record and an increase of $ 94 million from second quarter 2020 adjusted² EBIT EBIT and adjusted² EBIT benefited primarily from volume growth and metal margin expansion • Maintained $ 20 million of fixed cost reductions implemented in 2020 ( versus $ 36 million in 2Q20 ) o 2Q 2021 adjustment for a $ 28 million gain on the sale of real estate associated with our exited Fashion Bed business 0 2Q 2020 adjustments include a $ 25 million goodwill impairment charge related to our Hydraulic Cylinders business and $ 2 million of restructuring charges primarily from pandemic - related cost reductions • EBIT margin was 13.5 % and adjusted² EBIT margin was 11.3 % , up from 6.0 % in the second quarter of 2020 Second quarter EPS was $ .82 , an increase of $ .87 versus second quarter 2020. Second quarter adjusted² EPS was $ .66 , up $ .51 versus adjusted² EPS in second quarter 2020 . CEO COMMENTS Chairman and CEO Karl Glassman commented , " Our employees continued to drive strong results in the second quarter despite a challenging macroenvironment . Due to their tremendous efforts , we are pleased to deliver all - time quarterly record¹ sales along with record second quarter adjusted² EBIT and EBITDA . While we continue to navigate inflationary pressures along with supply chain disruptions , consumer demand remains strong and we are increasing our full year guidance . " We are also pleased to announce that on June 4 , we acquired a leading provider of specialty foam and finished mattresses primarily serving customers in the UK and Ireland . The company , Kayfoam , is located near Dublin and has two manufacturing facilities with combined annual sales of approximately $ 80 million . Kayfoam expands the capabilities of our European Bedding business and establishes a platform in foam technology and finished mattress production . Similar to our U.S. Bedding business , this acquisition allows us to support our European bedding customers anywhere in the value chain from innerspring and foam components to finished products including private label mattresses , toppers , pillows , and other bedding accessories . " Finally , we remain focused on cash generation while reducing debt and deploying capital in a balanced and disciplined manner that positions us to capture near- and long - term growth opportunities , both organically and through strategic acquisitions . " DEBT , CASH FLOW , AND LIQUIDITY • Net Debt was 2.32x trailing 12 - month adjusted² EBITDA Operating cash flow was $ 41 million in the second quarter , a decrease of $ 71 million versus second quarter 2020 , primarily from working capital investments to support growth and inflationary impact , which more than offset higher earnings Capital expenditures were $ 25 million • Total liquidity was $ 1.3 billion DIVIDEND • In May , Leggett & Platt's Board of Directors declared a $ .42 second quarter dividend , two cents higher than last year's second quarter dividend • At an annual indicated dividend of $ 1.68 per share , the yield is 3.5 % based upon Friday's closing stock price of $ 48.03 per share , one of the higher yields among the S & P 500 Dividend Aristocrats 1/10