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To: patron_anejo_por_favor who wrote (17414)	9/11/2000 8:01:40 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

Prewarning revisited: Leggett & SPLATT!!More fun with higher energy costs. If there wasn't an energy crisis, they'd have to invent one to explain the slew of earnings warnings we're going to see this quarter.... biz.yahoo.com Monday September 11, 7:08 pm Eastern Time Leggett & Platt sees lower Q3 earnings (UPDATE: recasts lead, adds details throughout) CARTHAGE, Mo., Sept 11 (Reuters) - Engineered products maker Leggett & Platt Inc. (NYSE:LEG - news) said on Monday it expects third-quarter earnings to fall below year-ago levels and miss analysts' expectations due to unanticipated developments in several business segments. The company said earnings in the third quarter ending Sept. 30 will be about 34 cents to 37 cents a diluted share, about 10 percent below last year's result of 39 cents a diluted share, and about 15 percent below the current analysts' consensus estimate. Sales growth for the quarter is expected to be about 13 to 15 percent. Earnings for the full year are expected to be about flat with 1999 earnings and sales growth for the full year is still expected to be about 15 percent. Leggett & Platt said continuing problems in the company's aluminum products segment will produce the largest portion of the shortfall but said lower sales in the commercial and residential furnishings segments will also contribute to the expected lower result. The company cited reduced demand, plant inefficiencies and higher raw material and energy costs for the downfall in the aluminum products segment. It cited reduced demand and integration inefficiencies at some recently acquired businesses for the shortfall in the commercial furnishings segment and cited softening demand, reduced production and lower margins in the residential furnishings segment. The company also said it has announced closure of two plants and is negotiating the sale of an aluminum smelting plant. The company also is considering plant consolidations and further plant closings, it said. Leggett & Platt also has begun cost reduction, profit improvement and working capital reduction programmes. Shares of Leggett & Platt closed off 1/8 at $18-9/16 on the New York Stock Exchange.

To: patron_anejo_por_favor who wrote (17414)	9/11/2000 8:21:26 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

i haven't read it yet...imo what chain-weighting mostly does is understate inflation...it's also based on hedonism (i.e. price increases are hedoned away). the fatal flaw in the hedonic assumptions is that it leads to an overstatement of the contribution computer hardware makes to capital investment and productivity growth, as well as the (supposedly declining) cost of living. however, as stated previously, any macro effects of this should be measurable in real dollars...if output is so much more productive, real dollar output should show that. now, processor speeds and memory capacities are rising fast - and thus, what amounts to a very small slice of the overall economy, namely computer manufacturing (essentially the screwing together of the improved parts) distorts the whole economic picture via hedonic adjustments. i'll look into the chain-weighting a bit further...i'll come back to this.