LEG - Earnings call transcript Q3 2019 | Leggett & Platt, Incorporated

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Wendy Watson

Good morning and thank you for taking part in Leggett & Platt third quarter conference call. I am Wendy Watson Director of Investor Relations. With me today are Karl Glassman, President and CEO; Jeff Tate, Executive Vice President & Chief Financial Officer; Mitch Dolloff, EVP Chief Operating Officer and President of the Furniture Products and Specialized Products segment; Perry Davis, EVP and President of the Residential Products and Industrial Products segment; Susan McCoy, Senior Vice President of Investor Relations; and Cassie Branscum, Manager of IR.

The agenda for our call this morning is as follows: Karl will start with a summary of the main points we made in yesterday's press release; Jeff will discuss financial details and address our outlook for the remainder of 2019, and finally, the Group will answer any questions that you have.

This conference call is being recorded for Leggett & Platt and is copyrighted material. be or not expressed without may permission. call transcribed, broadcast, recorded our This available portion the replay from A is IR of website. Leggett's release to along information posted website PowerPoint the Relations that and press slides portion of a summary with segment We contain set of Investor yesterday's financial the details. including supplement the call discuss on we documents reconciliations. Those this information non-GAAP

may to need remind you statements. expectations, number trends strategies, objectives, constitute and to the that forward-looking future uncertainties due or I Company obligation or results these Actual differ of risks events undertakes or events, statements. a to remarks today materially revise results, and concerning update no

For release Forward-Looking Risk Factors. a information, press and additional the and section Statements and XX-K these summary entitled Risk in Factors XX-Q yesterday's please refer to our of and

the Karl. now call I'll to over turn

Karl Glassman

morning you thank third participating our in and Good quarter call. for

Tate, welcome CFO want Jeff our I him. our First, introduce and team new to to to

you from segment, President of & CFO billion. aware, Specialty of as $XX Vice the Jeff and most Chemical likely with combined most Plastics served and over Leggett he operating largest Dow where the for joined are recently As September Packaging Business in revenue Platt company

performance the business discipline risk team of analysis, short at development, portfolio and member he controls. long-term drove His and where measurement responsibility planning, financial analysis proper business. the internal Jeff a strategic and was analysis, portfolio and strategy value-based of counsel financial in levels provided executives the operational is ensuring financial included and

with Alabama. a Chair Compensation in from he Finance prior was of public Corporation Jeff Pension where activities a Director of and and BS and Committees. Jeff a Management their Audit, Board of Accounting TCF of as and Directors internal serves account Relations. global member of of of is member He audit University In Investor certified the the Risk the Committee Financial as is roles, Dow’s a

brings Oversight Group. you is strong team. tremendous to capabilities a here. Company aligned Standing Leggett. served addition strategic He well senior Board's excited He and Public Jeff financial our also on culture the are is are management Advisory we to Accounting previously and our Jeff, Welcome with

to want Perry also recognize Davis. I

As I his XX this after a earnings mentioned call XXXX with in nearly and years retiring Platt participant. Perry will early Leggett & quarter, last last is be as

We that you calls will conference won’t participating going these miss I forward. Perry and suspect you in miss

of items of EBIT growth We highlight sales quarter in results. third we third an of have to our XX% quarter growth Yesterday, reported third XX%. XX%, EBIT growth and several adjusted quarter

$X.XX over and Third adjusted was XXXX EPS adjusted XX% $X.XX, per quarter share were increase a earnings third quarter EPS.

Operating to improved the a Adjusted a cash in XX.X%. sales as percent million. capital annualized strong for flow of working $XXX the was quarter quarter

Our results show focus teams generation. have cash the on our

much efforts appreciated. Your are

ECS XX% Growth from negative X% volume were a $X.XX Third smaller the impact. down Organic sales were acquisitions in from and currency billion. from and was quarter sales quarter. other and X%, X% deflation

X% by and of and businesses Automotive, Spring, Bed and planned demand sales which rod Furniture business steel Furniture Our and Home Fashion had weak wire. the quarter Work third sales offset growth exit reduced solid trade for U.S.

from exited declines Absent up was business, volume X%.

and quarter up bedding X% in ECS. up X% Mattress XX% the X%. well up Work Finished Spring units continued perform at was quarter. the were in sales were U.S. Our Automotive Furniture businesses with the sales third up year-over-year to in including quarter growth

$X were reduced earnings included XXXX quarter that share. per per restructuring-related This million $X.XX. Third charges $X.XX share earnings of

benefit the share Third a included $X.XX EPS to Cut quarter Jobs due Act. Tax and $X.XX XXXX per of

effective EBIT quarter tax interest a Excluding adjusted by expense. lower and earnings reflecting offset these third of partially items, from quarter up adjusted were rate, earnings higher third $X.XX higher $X.XX XXXX

and XXX benefit performance margin raw points lower after the EBITDA to increased of acquisition a points adjusted EBIT margin material and basis ECS $XX million expense, LIFO products. amortization Adjusted in XX.X% basis earnings from cost improved XX.X%. XX increased to furniture EBIT even benefited including

Bed The Home restructuring substantially activities Fashion our are complete. we initiated in the businesses of XXXX fourth and quarter Furniture in

adjusted points of adjusted and positive a lower up impact $XX EBIT million improved quarter, and the a With the are XXX notable in from seeing cost margin fixed EBIT segment’s already the we basis pricing.

We machinery restructuring our in million, a $X facility our from full million wire of third Products drawing now and non-cash. of further which quarter had closure We restructuring-related the year charges Products Industrial facility segment in the Residential a segment. in $XX of is expect small

yon the market. on We Automotive also update to wanted

is markets X% the to down expected global be is full Year-to-date, year. production down X% approximately and in the for

Our points. This grew by basis basis XXX market third exceed versus X,XXX quarter to X% Automotive exceeding year, growth XXXX, XXX over points. by market business should growth we global

specific a the confident by our to predict away in performance points, ongoing over although significantly goal market remained exceeding performance, strong markets market we continued to difficult We’ve relative the precision. of global X,XXX our makes still our the disruption long-term. Accordingly, growth we of moving it are expect basis from outperform with

news final violate imposed mid-October, on The Commerce range from made of mattresses. Mattress that Laws the more being mattresses Department are final duties Chinese a positive States at prices XXXX%. Anti-Dumping the Chinese to we from United imported and that In received U.S. sold determination that XX% Petition Industry’s Trade Anti-Dumping

excess mattresses Chinese duties Anti-Dumping a of of are now XX% in subject to XXX%. approximately Importantly,

Commission matter of make We expect the United a week than determination to first the no in Anti-Dumping later final States December. the International Trade

to Jeff. I’ll the over now call turn

Jeff Tate

Thank morning you, Karl, everyone. good and

of versus of was levels quarter As flow a quarter another on an same million the previously year, an and flow in last quarter focus working We cash by third our full million $XXX versus capital working keen operating mentioned, strong reflected and year of at operating was now in second improvement XXXX. the percentage our the exceed a capital cash as sales increase XX.X%, expect $XXX adjusted in quarter quarter, million. third quarter of to XX.X% the $XX XX%

$XXX million and our $XXX capital capital estimate Demonstrating dividend we our are from $XXX require to should year. ongoing for the reducing discipline, expenditure million million full year

additional and Through our to bring bring of to expectations expect full XXXX, over back million quarter before a original exceeds year offshore third back of cash. end. $XXX have of $XX significantly an cash $XXX year the million This returned offshore we million

X.XX trailing quarter’s debt the We pro an XX with ended second times, forma times. month at over X.XX our quarter adjusted EBITDA, improvement

$X.XX per $X.XX announced $X.XX our $X.XX restructuring-related $X.XX we yesterday, As approximately range for share of XXXX we including of from cost. are full earnings year to raising guidance share to per to range a

be $X.XX. earnings full range our guidance this to Accordingly, adjusted per full Based share year expected XX% year XX.X%. upon to EBIT framework, margin to should be $X.XX is adjusted

a shares of rate $XXX year million full assumes and $XXX guidance share year expense full fully diluted depreciation million, per interest tax effective and million. of $XX Earnings net of XX%, of amortization

our last sales are expectations billion to year. $X.X XX% narrowing full We XX% guidance over or to $X.X year billion to up

year-over-year Acquisitions should growth. XX% add

down We a to be X% X% expect Bed reduction business sales Home to exited Furniture. X% organic from planned our Fashion including and in

Spring, We year Work growth and in Aerospace. Bed, Adjustable U.S. also full Furniture, Automotive, expect sales

November as we City. Investor finally, our And in Monday, I close, invite XX to Day York New you on

from contact for Investor and website. which and slides Relations on Noon webcast We webcast Time. Investor will Relations be take the the more Please to event sign will to information available place The X:XX of up. A.M. will section Eastern our

to With call those comments, I’ll Wendy. over turn back the

Wendy Watson

we We prepared That We answer your attention thank participant. and questions. to that question glad your will one to you and you for request ask then the be remarks. concludes yield next our only

If questions you have additional as queue reenter questions, welcome answer will the well. to those you are and we

session. the begin Jessie, we Q&A ready to are

Operator

first Instructions] [Operator Bobby with Our proceed question Griffin question. Please Raymond your comes James. from with

Bobby Griffin

and the the first, impressive years. you you my an enjoyed on Perry, on Good I questions. quarter working morning career. taking I retirement over Congrats everybody. really appreciate have congrats and with I guess,

wish but the forward. I nothing So, you, going best

Perry Davis

appreciate I Bobby. Thanks, that.

Bobby Griffin

with Day And meeting at to look forward. to you, as welcome getting the move we Jeff, forward I company. as well Investor you and the work to

Jeff Tate

Thank you, Bobby.

to it. forward Looking

Bobby Griffin

So, going is pocketed U.S.? in in the from bedding there open that’s for the today us the on And penetration into more really penetration kind of where the still update question coil the instance? maybe Is units. room you of what’s shift versus the Can further going for of and see runway my innersprings penetration? pocketed a ComfortCore Europe that first on of on question high-level you just

Jeff Tate

It’s the third In be exceeded a It’s probably expectations – ask. one few in All our XX% for last little year-on-year. I’d my right, to Leggett, years. poor the quarter, growth a – for up Bobby. over sure XX was over ComfortCore

ComfortCore in at percentage total if look a quarter. runrate the XX% in as it’s you now So, about our innersprings business, of third

XX% those total of ComfortCore Quantum with Quantum the percent enhanced our products ComfortCore. Edge about products as Edge are Edge and that basically And, ComfortCore, the products of a foam that, of replaced springs are have

I what might beyond this out point, So top it’s thought about at well half almost at at I XX%. one we point, thought.

and efficiencies more seeing more and and be customers the manufacturing value the demonstrated products. benefits that and case in can spring-enhanced the in true our both consumer to are the those not in That’s their

way, compressed, really that readily as It By benefit in edge does can rolled that mattresses built-in see. not were seeing a the more inconsequential. of product Also more and it’s the support. they a provide customer

Bobby Griffin

way customers to large all adopted is a the If still Okay. Quantum haven’t that Edge? there few

Jeff Tate

are. There

manufacturing forward benefit. It packaging we We and and as standpoint too and much to just that will the grow. standpoint see consumer compression into a more makes to go January a further from we introductions market from expect Leggett’s from sense

Bobby Griffin

then, versus saw but updated parts And to the the I expectations. down get around me, come little midpoint, with a prior year moving lastly just guidance. was sales full up tick for detail maybe Okay. at slightly hoping actually the EPS more We

for maybe deflation at what’s of Can Is wire? sales the a around or driving the a external EPS incremental Auto uncertainty we the driving it that And what’s little around on unpack sales midpoint? then, the uncertainty as little well? bit reduction connect higher, bit first maybe further

Karl Glassman

slight Scrap more more It’s since Karl. keyword. guidance the as changes we Okay, last the of uncertainty Really, Bobby. has was off last end good sales traded July, you that since become aggressively which really the morning, guidance, expected. Deflation know issued apparent. we than midpoint has is we issued

see starting first So, ultimately Industrial good delayed reduced are actually Residential. because selling of the will life. the That’s to to in for prices segment that move we some margins,

at that positive, we rate. hit a an reduce as kind any on, of it, Automotive makes it’s sense kind continues that accelerated and negative if continue of just a So to that hit on you

think the majority We was of GM the by strike. caused that

impact that what for just election the up. So, October though auto have supply fourth in quarter, weeks we third workers quarter would have from strike the ratified in don’t we the of to know couple even ramp of the degree certainly, will all had the our datapoint, that and the chain a of the

some downshift, little uncertainty. a that and is there bit ourselves uncertainty with of allowed slight So for cushion have we that

than lower a tax with dealing are rate. we EPS, expected to relates it As

our You’ll third in need rate that notice forecast people. call favorably came and I really to to very quarter tax out

lower They of at expected. originally wonderful we did bringing job this back cash rate a than a offshore

expense. drove lower that tax rate, lower interest So

Our done a job cash people have generation. of great

So, perspective. we mattress lower a – have cash, rates interest from from a macro more

it. So that’s driving of part

the the We from again seeing of that an on deflation Products restructuring done Furniture margins, and people are the also segment. have improved from job our the terrific

Slight draft all out macro a on testament together. I listed. EPS rolled in So, a uncertainty top-line. on all pickup just down the and reasons for Again it’s

Bobby Griffin

I the quarter. helpful of very jump luck fourth the appreciate the That’s Best back and queue. Karl. detail, I’ll in in

Karl Glassman

Bobby. you, Thank

Operator

you. Thank

question with Please proceed next Baugh Our with from your Stifel. question. is John

John Baugh

wishes Leggett the Perry and in best morning, team retirement. Good

Perry Davis

Thank you, John.

John Baugh

Let’s see.

assets Karl or is since tracking has we it if at all? and could How Perry year-to-date? So, comment figure either revenue with on tracking And on see then, a acquired performance relative where maybe influenced ECS-to-ECS deflation pricing start that you’ve you expectations? year-over-year to maybe

Karl Glassman

question, looking pretty time some leading time. your has significantly. is definitely and that it that – input those historically chemical fall at were to it up to of kind answering the in in John, it the there likely high costs We the impacted acquisition deflation were knew top-line Well, of over months at

their those and margins terms up turn more began costs ability a some we they importantly, with to that we assuredly point became commodity. and and as downturn to go But of wanted It’s will generate in could what recoup through to around that over ECS time. at at look when comfortable

marketplace value in they But we with with the became really power the the had of and the that the product position comfortable offerings the uniqueness chain. had in they pricing

XX%. the took is XX% pieces their finished a ECS mattress Leggett the That's up in the is finished were products you XXXX to mattresses total at regards our and with and a year, there release amount So, increase of year-on-year. in that this in comment total terms produced you then look the just of historical

our of met that little massive certainly expectations deflation It’s that kind we've seen. just hitting of in the terms because So a impacts of growth. double-digit bit, that

John Baugh

Okay, so…

Jeff Tate

add. I would only Hi, John,

John Baugh

Yes, go ahead.

Jeff Tate

surprised ECS that Perry is that has us to. deflation rapid things made most certainly The about the reference

in is, of thing every country rate kind been has of to goes channel back The this other the compressed adoption really mattresses really of distribution hybrid Bobby’s incredible of in question in remarkable.

has that expectations. So, ECS exceeded element of

We the ECS are way really, really pleased tracking. is with

John Baugh

finished year But is is, in kind I don’t ago. Leggett standalone just pieces that So, double-digit I ECS know from the still year-over-year, if figure understood the Mattress bottom-line a Finished of a mattress tracking correctly?

Karl Glassman

while The relatively finished ECS insignificant important total Leggett correct. number. were year to to That's us of mattresses a the

John Baugh

prospects us there and areas wondering XX% down, are think, Okay. Rod what there you are what weak the I was in and demand are of wire kind could I customers near-term? was tell if and

Perry Davis

in uncertainty It’s the States. macro It’s all trade. it’s of United markets. kind John,

about than open softness of our gets sold Industrial now be that of in production remember it’s all it smaller general and XX%, it’s that into the Perry, might even those You total number just a market markets.

John Baugh

Okay. it It pricing on I business looks believe acquired? with should newly I like hydraulic was anything sales XX%. down up. there that saw was Is going And were – I that

Karl Glassman

and I forward looking are to talking. Go Mitch Mitch Perry John, ahead

Mitch Dolloff

equipment, more really market the of unit volume material is We includes phenomenon Yes, global which it’s truck for a handling there. industry which PHD. core a is saw industrial

and X.X% in We the year-over-year are almost down X% quarter. in second about QX down

to North in demand Europe. customers there and producers XX% are seeing in our XX% generally forklift into And XX% America the which leading are drop

So, seeing the were volumes we early XXXX the in XX%. declines to catches our business those we up long had and lead supply as times are in that chain XXXX up when over

where environment where couldn’t to an from in see pretty significant now we one up going are demand. keep They declines we

cost our to last roughly the struggling flat, pass-through inflation. we that’s were there. Interestingly, material because phenomenon earnings So, really were year, raw

what your relates to comment. that’s So pricing

volume just had we sort which of Basically, up we that our cost down to offset year. this pricing caught the material that decline

So, outside we to declines volume are to take cost see action taking the we headcount reduce other and response in coming. that

John Baugh

legacy Okay. from of the these Thanks. stronger increase good. you the and Furniture drag or EBIT and And was Fashion just of is quite will merely the businesses were Bed this and cost when addition is Home out that? pricing question on, of in down, was exiting anniversary parts last the furniture I know but said function remaining exiting a businesses my we that called of

Mitch Dolloff

I John. think it’s both,

from I business. margin that those think we are of making that in benefiting from exiting sort improvements large business, but also benefiting structural

So we pricing have better discipline.

and excess are a capacity significant taken from overhead standpoint, pure but manufacturing cost We also a taking offline we’ve out standpoint. from

forward. think to So, position be the also put stable contingent a more us that’s more but restructuring had we in a profitable going effect, and that

Furniture, that your the this we To business I year our of have anniversary, Home we probably that think see of we don’t some full exited. year

think standpoint, margin by the improvement year, well we from standpoint. pretty sales then Fashion a sales I but Bed from So will we bit see down quarter a wrapped are next of and will impact we the a end from see little a third standpoint continued

So, here. me I am let remember trying to

have So, we will no sales next repeating basically year.

business a we to million. have small But We are that's about exit. hospitality that looking $XX

So, so million won’t to I be and next think those repeat $XX sales XXXX $XX there our year. will million

Perry Davis

is John, one this point. There Perry. additional is

original answer to just your of Europe it us part want asked question ComfortCore. had to sure make and that You we as and regard I with

pretty all I XX%. said, areas promotional of U.S., play for the premium. in is in the value Bear to different in we whether as it’s U.S. ComfortCore So, Leggett chain strongly, mind, the the in approaching

the Europe of much or a the of a upper-end part In our or sales. not of percentage to trend as in so ComfortCore We innersprings tend more markets percentage mid-upper-end total the the towards case. Europe, higher represents

have Open a market are Bonnell play tend There and imported, that we in market in and not. lot of much historically don’t and that that innersprings low-cost, to so Coil are

sales an even represent So, our ComfortCore percentage in would of higher Europe.

John Baugh

good and Thanks Great. luck.

Karl Glassman

John. Thanks,

Operator

Thank you.

from with question Moore your with is CJS Please next Daniel question. Securities. Our proceed

Stefanos Crist

Stefanos Hi Crist Dan. This good morning. is for calling

Karl Glassman

morning, Good Crist.

Stefanos Crist

in in weather Do a far and seeing lot customers experienced poor particularly in from shift a QX come your seen of has to many companies QX what and you them housing have back? Residential, demand think so you are of QX, a impacted in QX? In

Perry Davis

had a that certain think, seen a terms I a multifamily sold We’ve instance into product of in Crist, little in Yes, But, businesses, gets volumes. impact. of it an that's challenge with our products factor, in housing has flooring for also. – bit of group lot

But have volumes. on amongst a impact of seen a customer our major negative bit groups, we

normally that. the Some a don't to of do like definitely weather we those which see on few businesses, in could likely would although of we lay that, yes, that. you But to

Karl Glassman

in it’s probably Crist, don’t geocomponents about talk total there business, again, point, weather. In not much some was And the our generally Perry’s but sum we to impact things significant. of

Stefanos Crist

how Thanks. then, from divested you do businesses remaining QX? it. expect volume And of Got headwind in much a

Wendy Watson

and another from X% businesses volume in exited the the QX. quarter in it’s down Stefanos,

Stefanos Crist

Another X%.

Wendy Watson

Basically, the as history. same

Stefanos Crist

And it got Yes, Thank it. right. that’s me. All you. for

Operator

Thank you.

next Hughes proceed Please your question. Humphrey. Our Keith is with from Robinson SunTrust question with

Keith Hughes

you. A the on XX, assumptions questions couple Thank your Slide year. for

math assume products mean in negative here organic flat Specifically, pretty after organic sales solid talked a would residential in about quarter the a number – of in you fourth I kind it’s the another third. rough number which

driving what's It just that nuts that the great. like ECS may be of about bolts will be and talk you Can kind of down? sounds part

Wendy Watson

Yes, sorry, Keith. It’s Wendy.

got to Flooring a in we’ve our this those deflation some down in nice the see year we fourth businesses. see in of U.S. numbers seen They’ve growth We and other expect Residential quarter. been and that to lot has But too. continue Spring expect continue. softness in to

organic in resi. quarter primary of fourth flat the the sales that’s driver So in

Susan McCoy

issue it’s a deflation, bigger And

Wendy Watson

Yes.

Susan McCoy

continues to as through. In the that quarter fourth roll to us,

Karl Glassman

of point, XQ a in XQ and thanks impact in to of residential. starting greater Industrial impact think deflation an kind having in to Keith, in Susan’s have

Keith Hughes

And better it specific you Okay. earlier. about to talked ECS get

for with I at would the they compare not margins, you dollars the EBIT dollars. to but projections about talking If XXXX, your EBIT am and look dollars ECS, how at just

Karl Glassman

up the needs. EBIT original on Wendy you probably test dollars compared to be on. it would me me projection. Thank to and does Check but going is

Wendy Watson

close. Yes. I Yes, pretty pretty, there… mean,

Keith Hughes

as to but inputs what deflation you well. am projections, is of see trying to course, but gone to as how I their And it XX, Not down doing? get this have

spread on trying the capture Just how works. to this

Wendy Watson

It’s going to flat be to…

Keith Hughes

Flat.

Wendy Watson

to down, absolutely to will the with attribute Yes, deflation. be you it’s be part going could that flattish

Keith Hughes

Okay.

when as am not seeing see we markets well? coming deflation the in So, as in these deflations end-user the I and inputs

Wendy Watson

Yes. In the Chemicals.

Keith Hughes

the yes. chemicals, In

Wendy Watson

Yes.

Keith Hughes

Okay.

the in – like So growth so, business mean, their is I terms a in there of of units. sounds it lot

So, up. dollars just there had not gone

XXXX So notably in versus XXXX?

Wendy Watson

In the well. –

Karl Glassman

that’s of shared of parts some pieces of numbers, toppers, generally, are terms think, demand generally we seeing the pillows there. types tremendous looking in I products business foam seen things. finished not important in environment The true. growth only Yes, mattresses, number their demand the but we’ve just at Keith, in other those of in of

certain we we because our of actually over simply just back order had addressing acceptance, have have quarter as capacity some speak. last we We throttled points we concerns, which the where had some are

our lines things get added layouts We changed have We better manufacturing operations. mattress in order for some floor efficiencies to production. within additional and

at half of in that when at that under environment. dollars mattress little contract. it space in of terms a our by the last overall count you was Again, pretty look under volume severe again, But, deflationary handicapped

they raw steel-related take in a step-down they we happen. businesses. all We do inputs. our see we and happen because, over we as picture saw And our kind as material decreases So, deflation down a an don’t we time, delayed once in those of incremental see much

Wendy Watson

up, from our after we quarter, a And even sales a while drag that’s Keith, dollars was were deflation. just, XX% saw that roughly and

Keith Hughes

all Okay. And Thanks. for me. Thank that’s you.

Operator

proceed Thank Please you. question Our with Peter from comes [Operator Keith with question. Instructions] your next Piper Jaffray.

Bobby Friedner

Thanks Hey, question good results. for actually It’s on Peter. and morning our everyone. Bobby for Friedner nice taking

now gross year-over-year seen two quarters with wanted nice improvement. to So I so, discuss margin,

QX different that margin that early and you buckets we if now XXXX, expansion? hoping do little look sustainability of was But contributing improvement. Thanks. as a detail I discuss the to gross to think the how could you are when in more

Wendy Watson

Hi, The business Bobby. improvement and profitable are behind It’s This between deflation. growth takes businesses. gross from reverse low-margin had the from drivers is benefit with margin lag seeing volume then, and and puts really exiting the our about we and – to the Wendy. we talked our LIFO do

discussed, certainly then, XXXX our and we for February of we won’t to continue get in until some the benefit Home but to – relative XXXX, are guide year we we Mitch earnings, we to announce And see full will as

those improvements be that would ongoing our are to and as and more we business is well. seeing from doing the with expect Furniture improvements we see profitable We performance. pleased see we business

Bobby Friedner

still Okay. expect down benefits guess, significantly continued a as just be LIFO Should seem And follow-up I prices we to in still year-over-year. running QX?

Wendy Watson

Yes.

is estimate year million. full $XX Our

a So, million roughly quarter. the fourth expect we benefit in would $X

actual. As you know, we it true quarter fourth to in the up

an for million that is So, year. report will estimate. $X we It let you that is when we’ll actual the what the know be wrong full

Bobby Friedner

Okay. lot. Thanks a

Wendy Watson

You bet.

Operator

time. It appears additional at this we you. no Thank questions have

like would for any over pass I comments. Watson back So, concluding additional to Ms. the floor to

Wendy Watson

and you quarter. Thank everybody next to you talk we'll

Operator

does and disconnect gentlemen, may teleconference. you for your Ladies your conclude this and We you time. at participation thank lines today’s this

Leggett & Platt (LEG) 29 Oct 192019 Q3 Earnings call transcript