(RTTNews) - Engineered component maker Leggett & Platt, Inc. (LEG: News ), Thursday reported a plunge in second quarter profit, as sales dropped substantially reflecting weak sales from all its segments. Results also reflects non-cash write down related to last year's aluminum segment divestiture. Leggett & Platt also warned its full year 2009 earnings would be less than its previous projection.

For the second quarter, net income attributable to L&P plunged to $19.0 million or $0.12 per share from $46.3 million or $0.27 per share in the same quarter a year ago.

Net earnings from continuing operations was $19.1 million or $0.12 per share, down from $45.2 million or $0.25 per share in the comparable quarter last year.

On average, six analysts polled by Thomson Reuters expected earnings of $0.14 per share for the quarter. Analysts' estimate typically excludes one-time items.

Profit for the quarter dropped primarily due to lower sales and an $11 million or $0.04 per share non-cash write-down of the note received in last year's aluminum segment divestiture.

Net sales for the quarter dropped to $757.4 million from $1.06 billion in the prior-year quarter, while the Street expected revenues of $780.82 million.

In the immediately preceding first quarter, Leggett & Platt reported a sharp decline in profit to $8.9 million or $0.06 per share, on lower revenues reflecting weaker sales from all its segments. Sales from continuing operations dropped 28% to $718.1 million.
Amongst others in the industry, Flexsteel Industries Inc. (FLXS) reported a slip to loss in the third quarter at $1.9 million or $0.28 per share, as sales dropped to $73.6 million from $98.1 million in the prior-year quarter.

Another peer, Genuine Parts Co. (GPC) reported a second-quarter profit that declined 22% to $103.61 million or $0.65 per share, as sales declined across all segments. Net sales were down 4% at $2.53 billion.

For the quarter under review, Segment wise, revenues from Residential Furnishings of Leggett & Platt dropped 24.2% to $418.3 million. Commercial Fixturing and components declined 27.1% to $130.6 million, due to the company's decision to walk away from sales with unacceptable profit margins, market softness in office furniture components, and reduced spending by retailers.

Industrial Materials plunged 39.4% to $102.9 million as a result of weak demand and lower steel prices. Specialized products fell 34.9% to $105.6 million reflecting weak global demand in all parts of the segment - automotive, machinery, and commercial vehicle products. Intersegment sales were down at $66.7 million, compared to $105.5 million from the year-earlier quarter.

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