Leggett & Platt To Implement Restructuring Plan; Withdraws Long-term Financial Targets

(RTTNews) - Leggett & Platt said it is implementing a Restructuring Plan primarily in its Bedding Products segment and to a lesser extent, in its Furniture, Flooring & Textile Products segment. The company plans to consolidate certain locations across the Bedding Products segment, reducing manufacturing and distribution footprint of 50 facilities to approximately 30 to 35 facilities.

Leggett & Platt expects the restructuring actions to generate $40 to $50 million in EBIT benefit on an annualized run-rate basis when fully implemented in late 2025. The company expects to incur restructuring and restructuring-related costs of $65 to $85 million, of which approximately half are anticipated to be incurred in 2024 and the remainder in 2025.

In connection with the Restructuring Plan, Leggett & Platt is withdrawing previously stated Total Shareholder Return goal of 11-14% and financial targets. Unrelated to the Restructuring Plan, the company is impairing an estimated $450 million of long-lived assets associated with prior year acquisitions in the Bedding Products segment.