Leggett and Platt Inc.
) recently announced the end of the acquisition procedure,
initiated in December 2011, of Washington-based Western Pneumatic
Tube Holding, LLC.
It is anticipated that the all-cash transaction, valued at $188
million, would be slightly accretive to Leggett and Platt's
earnings in the first year of acquisition and will form a new
business unit within the company's Industrial Materials
Western Pneumatic Tube Holding is a leading provider to the
aerospace industry of integral components for critical aircraft
systems, including fuel, hydraulic, pneumatic, environmental,
stability, life support and cooling. Employee strength is
approximately 140 people.
Leggett and Platt is one of the leading manufacturers of
components of residential and office furniture, carpet underlay,
drawn steel wire and automotive seat support and lumbar systems in
North America. The company follows a policy of acquiring high
quality businesses to achieve its long-term annual growth target of
4% to 5%.
Of late, in its third quarter results, the company's earnings
per share of 31 cents fell short of the Zacks Consensus by 5 cents.
Revenue surged 8.6% backed by increased pricing and favorable
Leggett & Platt expects its full year 2011 earnings per
share to be within the 99 cents to $1.04 range due to a non-cash
and pre-tax charge of nearly $36 million planned in the fourth
quarter of 2011. The charge is expected to mainly relate to
restructuring activity, including the discontinuation of some
manufacturing facilities.The current guidance is a revision from
the company's prior guidance range of $1.15-$1.20
The company is slated to release its fourth quarter results on
February 6, 2012.
The current Zacks Consensus Estimates for the fiscal years 2011
and 2012 are $1.19 and $1.42, representing year-over-year growth of
2.44% and 19.21%, respectively. Estimate for the fourth quarter is
21 cents, representing annual decline of 0.79%.
LEGGETT & PLATT (
): Free Stock Analysis Report
To read this article on Zacks.com click here.