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Leggett & Platt announces restructuring plan to drive performance and growth

Manufacturer Leggett & Platt announced that it is implementing a Restructuring Plan primarily in its Bedding Products segment and to a lesser extent, in its Furniture, Flooring & Textile Products segment. In response to evolving markets, the Company is taking actions to improve manufacturing and distribution efficiency, advance its product strategy, and further support customer needs. These actions are expected to generate $40 to $50 million in EBIT benefit on an annualised run-rate basis when fully implemented in late 2025.

Photo: Legett & Platt

President and CEO Mitch Dolloff commented, 'We are taking actions to create a more focused, agile organisation with a portfolio of products and operating footprint aligned with the markets we serve. The bedding market has experienced unprecedented change in recent years and the competitive landscape has continued to evolve. Reshaping our Bedding Products strategy is expected to better position us for long-term success as the leading provider of bedding solutions across the value chain. In addition, optimising our operating footprint in both Bedding Products and Furniture, Flooring & Textile Products will reduce complexity and enhance the efficiency of our business. Looking forward, we expect to advance key product growth, improve profitability, and drive enhanced value for customers and shareholders.'

Restructuring Plan
As part of its Restructuring Plan, the Bedding Products business of the company is undergoing major initiatives. The strategic refocusing involves shaping the Bedding Products business to emphasise innovative, higher-value content that aligns with customer and end-consumer needs. This includes focusing on both innersprings and specialty foam, from components to private label finished goods.

To optimise efficiency, the plan includes consolidating certain locations across the Bedding Products segment, reducing the manufacturing and distribution footprint from 50 to approximately 30 to 35 facilities. This aims to create a more efficient regional distribution network, supporting higher-output facilities to meet anticipated future market demand.

In the Furniture, Flooring & Textile Products segment, there will be consolidation of production facilities in Home Furniture and Flooring Products to align capacity with regional demand and enhance operating efficiencies.

Financially, these initiatives are expected to reduce annual sales by approximately $100 million but generate $40 to $50 million in EBIT benefit annually when fully implemented by late 2025. Additionally, net cash proceeds of $60 to $80 million are anticipated from the sale of real estate associated with the initiatives. The restructuring and related costs are estimated to be $65 to $85 million, with half incurred in 2024 and the remainder in 2025, including $30 to $40 million in cash costs. The restructuring is anticipated to bring about positive outcomes in terms of profitability, efficiency, and shareholder value.

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