Leggett & Platt Says Expected To Reduce Annual Sales By ~$100M; Anticipates Receiving ~$60M-$80M In Net Cash Proceeds From The Sale Of Real Estate Associated With The Initiatives; Expect To Incur Restructuring And Restructuring-related Costs Of $65M-$85M
Portfolio Pulse from Benzinga Newsdesk
Leggett & Platt announced initiatives expected to reduce annual sales by approximately $100 million but generate $40 to $50 million in EBIT benefit annually by late 2025. The company anticipates $60 to $80 million in net cash from real estate sales by end of 2025 and expects to incur $65 to $85 million in restructuring costs, with about half in 2024 and the rest in 2025.
January 16, 2024 | 3:50 pm
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NEUTRAL IMPACT
Leggett & Platt expects a reduction in annual sales by $100M, an EBIT increase of $40-50M by 2025, $60-80M in net cash from real estate sales, and restructuring costs of $65-85M.
The reduction in sales may negatively impact investor sentiment in the short term, but the anticipated EBIT benefit and net cash proceeds from real estate sales could offset this. The restructuring costs are significant but are investments into the company's future efficiency. Overall, the impact is mixed, hence a neutral score.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100