Leggett & Platt considers sale of store fixtures business
(Reuters) - Furniture maker Leggett & Platt said it is looking to divest its underperforming store fixtures business and expects to take a $108 million goodwill impairment related to the business in the second quarter.
The company is also exploring other strategic options for the business, which has been hurt by a fall in demand from major retailers, it said on Monday.
The store fixtures group, a part of the company's commercial fixturing and components business, makes shelving, counters, showcases and garment racks for retailers and discount chains.
It accounted for about 7 percent of the company's 2013 revenue.
"The Store Fixtures group is dependent upon capital spending by retailers on both new stores and remodeling of existing stores," the company said.
The business' 2013 performance fell short of expectations and failed to rebound during the second quarter ended June 30, Leggett said. (bit.ly/1qZkxT3)
It expects the pretax charge to reduce second-quarter earnings by 65 cents.
Analysts on average were expecting a profit of 47 cents per share, according to Thomson Reuters I/B/E/S.
(Reporting by Mridhula Raghavan and Abinaya Vijayaraghavan in Bangalore; Editing by Don Sebastian)