WASHINGTON (dpa-AFX) - Leggett & Platt Inc. (LEG) said Monday that it expects to record a $108 million pre-tax, non-cash goodwill impairment charge for the second quarter to reflect the complete write off of the goodwill associated with the Store Fixtures group, which is part of the company's Commercial Fixturing & Components segment.
The earnings per share impact of the non-cash charge is expected to be $0.65 per share. Apart from the impairment, the company has made no update to the underlying full year EPS guidance issued in April.
After falling short of expectations in 2013, the Store Fixtures group's 2013 performance performance did not rebound during the second quarter of 2014 as expected, with the deterioration of revenue and profitability most pronounced in May and June, the company noted. Consequently, it has become apparent that the current market value of the Store Fixtures unit has fallen below its recorded book value.
The company said it has hired an investment banker and is exploring strategic alternatives, including the possible divestiture of its Store Fixtures business.
Copyright RTT News/dpa-AFX
© 2014 AFX News
