July 14 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
"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)