Released on November 13, 2007

Diversified manufacturer Leggett & Platt, Carthage, Mo., announced it will divest more than one fifth of its portfolio, including all of its aluminum, zinc and magnesium diecasters.

The company, which is composed of five different segments, said in a press release that it will eliminate its aluminum products segment, which is composed of diecasters, through divestitures and closures. According to the release, the move is intended to narrow the manufacturer’s focus and trim approximately $1.2 billion of its revenue base.

The largest portion of the revenue reduction (approximately $900 million) will come from actions related to the aluminum products segment, a supplier of non-automotive die castings to manufacturers of gas barbeque grills, electrical and lighting equipment, telecommunications and electronic equipment, diesel and small gasoline engines, and other industrial products. The company will eliminate six other business units, as well.

Leggett & Platt is pursuing divestiture of all these businesses during 2008 and expects to generate about $400 million of after-tax proceeds.

“We are making significant, necessary changes to the way we assess our portfolio of businesses and to how we manage our asset base,” said CEO and President David S. Haffner. “Our shareholder returns have suffered for the past few years, as part of our portfolio has dragged us down. We are correcting that by divesting several of our businesses.”

The company said it believes the move eventually will contribute to significantly higher free cash flow, anticipating that for the four-year period 2007-2010, free cash should be more than double that of the 2003-2006 period. The company plans to return much of this additional free cash to shareholders.

However, Leggett & Platt also expects significant restructuring-related charges as a result of these activities. The amount and timing of these charges has not been finalized, but they are expected to total $150-300 million, virtually all non-cash.

“Longer term, I'm convinced we will reestablish Leggett & Platt as a growing and substantially more profitable enterprise, a company that consistently generates above-average total shareholder return,” said Haffner.