CARTHAGE, Mo. – Price increases are on the way in the majority of Leggett & Platt’s steel-consuming businesses, officials said.
Steel cost increases are impacting Leggett & Platt, the company said in releasing its first quarter results.
L&P said that raw material-related price increases and currency impact added 5%, and volume grew 1% in the first quarter.
Karl Glassman, L&P’s president and CEO, said that inflation “continues to be a significant margin headwind. Steel costs increased in late 2017 and have further accelerated this year. We are implementing price increases (with our normal 90-day lag) in the majority of our steel-consuming businesses to recover the higher costs. In our Home Furniture business, where we have not yet been able to fully recover inflation because of offshore competition, we are also reducing our cost structure and moving additional production to our Chinese operations to take advantage of lower input costs.”
In announcing 7% overall sales growth in the first quarter, the company said it was “benefiting meaningfully” from inflation and currency.
“Volume growth reflected continued strength in Automotive and Adjustable Bed, but these gains were largely offset by soft demand in several other businesses,” Glassman noted. “We continue to be encouraged by opportunities we have developed in our Bedding business and expect market improvement as 2018 progresses. We are benefiting from increased content as we continue to place higher value components in more of the mattresses that our customers produce.”