Leggett & Platt (LEG)

Financial Results

With $1.2 billion of revenue reduction, and assuming modest growth from that reduced base, full year 2010 revenue could be approximately $4.3 billion. Assuming no deterioration in market demand or general economic conditions over the next few years, EBIT margin should increase to about 11% in 2010, largely as a result of divestitures, plant closures, and initiatives that will improve returns on the base portfolio. Based on those sales and margin assumptions, the company anticipates annual TSR over the next three years in excess of its 12-15% annual target.

As a result of these activities, the company expects significant restructuring-related charges. Though the magnitude and timing of these charges has not been finalized, they are expected to total $150-300 million, virtually all non-cash. Details regarding the impact on fourth quarter 2007 earnings will be communicated

P. O. BOX 757  ·  NO. 1 LEGGETT ROAD  ·  CARTHAGE, MISSOURI 64836-0757  ·  417/358-8131

to investors once the amounts become more certain. Annual earnings guidance for 2008 will be issued as part of the January 24 earnings press release, and updated quarterly; however the company will no longer be issuing guidance regarding quarterly earnings.