LEG - Earnings call transcript Q3 2024 | Leggett & Platt, Incorporated

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Operator

Greetings, and welcome to the Leggett & Platt Third Quarter 2024 Webcast and Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Cassie Branscum, Vice President of Investor Relations. Thank you.

You may begin.

Cassie Branscum

to Platt's welcome Earnings Quarter and Call. morning, Leggett Third & XXXX Good the Karl Investor Products today Burns, me Kolina Flooring call With on segment; Products are President the Hagale, and of and Textile Smith, Manager CFO; President Glassman, the Sam Bedding of segment; Talbert, of Furniture, Relations. Tyson Ben CEO; Ben update revised Karl you will and other demand trends current The our this call discuss results and operating agenda our address any and plan morning provide cover will group on an and for ongoing details questions restructuring will answer initiatives; is XXXX as follows: financial the the and have. additional outlook; our

revise for A Relations documents section This with Those a company available press or transcribed, summary to release and and constitute materially & Investor recorded expectations, Platt no reconciliations. results events that material. replay objectives, on today financial future set section without the website. statements. slides not the undertakes details the yesterday's our conference information the this being our is to expressed contain and our will IR be call these of including of or broadcast due restructuring number recorded obligation may be Remarks information, permission. Leggett concerning posted update. We This is of discuss forward-looking non-GAAP and or copyrighted a call and trends uncertainties, statements. a may segment results strategies, website events, call, to risks we Actual along differ on or supplement update of

over and XX-K sections to Karl. factors Forward-Looking XX-Q and Risk and in I'll Factors the yesterday's these our of press information, additional summary call recent turn risk please now a Statements. entitled to and subsequent most refer the release For

Karl Glassman

and joining thank you our morning, for today. call Good

for dedication challenging as backdrop. our hard we want begin, their thank macro employees we As a navigate I continued to work and

and our below quarter these weaker-than-anticipated is expected and end to demand is previously earnings more than headwinds in quarter residential and third expectations, Components. fourth were markets expected through demand Cylinders to in largely Our anticipated. impactful the and sales Geo Hydraulic Sluggish due persist Automotive, to be businesses in

we detail are which in and the As sales earnings a guidance, full Ben reducing year later result, will call.

like I'd Bedding demand U.S. market of a to in key highlight negative Now end experience volume few to dynamics The the comps. continues our markets. current

in domestic the that single consumption some We Although in observed production between but demand softer. mattress improvement during sales, third likely have quarter, U.S. down was has in flat approximately estimate been been high holiday periods was digits.

Given a continue the digits expect XXXX be market versus year. environment macro challenging will expect domestic be consumer to and in down we fourth the quarter domestic in last more to pressured mid-single and softening units spending,

are see a single is demand. to XXXX segment improvement digits we While rate will housing between be due trends in of an interest be a encouraged also meaningfully our We cuts, mattress lag cycle begin the high we of that know turnover. cuts company-specific needed still improvement Fed there to Products in will And a down impact Bedding and volume factors. to anticipate housing series

volume non-bedding rod to be down segment for Excluding would double low higher sales trade be expected digits. applications,

and our our on better than that semifinished note number to with mattress customers closely are or to perform domestic continued refreshes line value important engineering it's we in with opportunities. of However, a product trends, line ComfortCore and working and products production

customers. softness short OEM Chinese affordability In In geographies. currently our market economic and down China, losing is trade notice vehicles, EV launch given represented, supply Turning affordability to time less EV and lower-cost to across remains declines. Automotive. delays delays Europe, multinational volatile Chinese to uncertainty in share consumer In trade are are in resulting EV manufacturers, issues North around leading and where issues America, customers to The production product opportunities declines, product program downs. program electric consumer we lines for manufacturers transition production launch and have resulting

are expected, to our previously impacted sales more cost, team improvements these by factors closely in efficiency our improved realize resulting Although than continues EBIT and margins. manage Automotive

in initiatives Components quarter retail growth we remain margins to expected opportunities. and seasonal strengthen operating near-term civil weakness the Finally, our for third the sheet, future fourth Despite continue position trends normal our profitable to business market balance continued both our in focused softness. are the challenges, through efficiency and demand impacting construction to and These in Geo the on quarter, improve ourselves addition sales.

share to have executing restructuring the remains job plan. done that an and pleased on teams excellent plan track, our I'm our

Bed We location expect facility operation and cost-advantaged activity year-end, and by more will closed restructuring be will in innerspring conclude excess to closed Foam, production Mexican all exit more operations we year-end. and to X Within which Bedding quarter, complete cost Products the to we in by shifted segment. Adjustable our the Early X capacity improve innerspring-related X our a structure. fourth consolidation Specialty have reduce

efficiency Textiles our Restructuring are we in the to X profitability Phase Furniture, We Products executed team Home our initiatives complete Products, and activity by restructuring through Cylinders flooring the restructuring on increase Specialized early expect optimization track. successfully and next project of Furniture, segment also products restructuring designed actively to our in Hydraulic is Flooring and improvements. operating manufacturing through year. working Within

we our in-depth portfolio strategic was review Last of underway. an quarter, shared

portfolio are long-term to We for on Platt. our fit right are the Leggett & simplifying businesses focused that

business. disclosure of or exploring our strategic to updates comment regarding of is we determine the on that part sale our we and evaluation intend until process unless are As further otherwise provide or this strategic not appropriate. currently Aerospace We do required review, potential

cost an continue also structure. evaluation our We administrative of to general work and through

Our analyzing to project team identifying opportunities G&A efficiencies. is drive and

$XX identified million which in savings, expected have corporate be cost realized We approximately in are XXXX. to

functions. business within We continue our identify unit potential analyze and to opportunities

potential to to execute and reductions and ability turn our call plan confident those restructuring and third the position to operation in We our quarter details revised improvements review for long-term for Ben efficiency the anticipate now success. the will company than identified I'll over remain smaller year. corporate other be financial in we outlook our functions. cost However, our

Benjamin Burns

Thank and morning, good you, Karl, everyone.

quarter third due versus Products XXXX, quarter down of sales X% across quarter Third $X.X decreased Bedding volume the material-related X%. X decreases. price XXXX were our raw selling declines to to segment billion, and third all sales in segments Compared

year-over-year, Furniture, were quarter and Products in declined sales X%. Products and X% in down Flooring Third Textile sales Specialized

Products, margin $XX bad compression efficiency results, was due XX in improved amortization primarily EBIT by operational expense, partially debt quarter offset third and volume, million, Third and points EBIT by million weaker-than-expected adjusted $XX to EBIT lower reserves, was metal and versus restructuring basis higher benefit. Despite million, product XXXX, mix down margin sequentially this Bedding $XX quarter adjusted quarter. improvements lower unfavorable

quarter XX% quarter was sharp an $X.XX, adjusted Third quarter third versus basis, EPS per remains an of was On $X.XX. a XXXX generation third adjusted EPS decrease focus. share earnings $X.XX. Cash

for cash and cash funding organic and priorities strategic to growth, of long-term shareholders funding returning acquisitions are Our use dividends share through repurchases.

fund near while growth. term, continuing we to organic in However, prioritizing debt are reduction the

now working versus decrease sales ended and cash versus million, was the operating from million XX prior quarter, basis approximately million $XXX from quarter to is XXXX XX.X%, capital $XXX We in third quarter third versus a our with of This quarter of lower of an annualized capital as of guidance less $XXX Cash million. XXXX. operations percentage points $XX of be expected benefit the XXXX. of primarily third million $XX earnings. working a decrease to driven the by increase was flow In adjusted

total reducing includes In made as by to $XX the million billion, progress commercial third quarter, debt planned, $X.X we of paper debt outstanding. reduction $XXX million on which

to to debt quarter net adjusted X.XXx end. EBITDA Additionally, trailing at XX-month decreased

to the long-term target fourth leverage our of toward expect make quarter. in progress ratio further We Xx

a will sales debt along for cash used As estate be accelerate to real potential from the and reduction. proceeds reminder, used divestitures, any previously with dividend,

capacity costs our to of still comprised under expect our commercial at XX, in million in remaining was credit predominantly a $XXX and paper on maturing plan were cost total and during notes million $XX million, We timing million million program costs $XXX September repay of comprised $XXX to revolving $XXX million hand costs. Total perspective, on liquidity and in cash changes or $X of $XX there November. Restructuring from our are no facility. utilize remains estimates of in cash The of costs. to the track cost quarter million noncash

to In versus our be million realized realized implemented restructuring approximately the benefit we XXXX. the attrition related attrition third of prior expected $XX the expect of initiatives are fully $XX are total million expected all million. $X million. G&A to third quarter, million basis sales $X in XXXX restructuring-related million expect prior EBIT initiatives is of and quarter, to $XX approximately in now $XX now our fully late be Total from in versus once of attrition $XX in annualized expect on million additional plan an still benefit EBIT $XX of XXXX to $XX We annualized XXXX due of to to the of approximately benefit realized in run $XX We and estimate $XX sales the million to million implemented after initiatives. late still sales million million our million rate estimate EBIT $XX

prior estate approximately of in in proceeds from An We million proceeds versus expected complete. our of anticipated to In cash sale million. million in the plan. to real real $XX is estimate from when the realized $XX estate third of quarter, in $XX the the additional XXXX, proceeds sales with are $XX cash XXXX million $XX expect be to million in restructuring-related we associated now $XX million majority

Our million real proceeds total unchanged. estate to restructuring in expectation $XX related of remains $XX million

into to with lowering down volume anticipate $X.X Flooring the trends high versus single X% our $X.X and or prior XXXX digits guidance Textile prior billion, Specialized in low is compared Volume our to and particularly XXXX segments. Products Products weaker Furniture, single down Textile X% to mid-single down of Furniture, mid-single are Flooring and in be down guidance billion mid-single volume EPS digits Bedding of versus quarter, the expected to midpoint digits. $X.X sales billion down be of now at prior down Specialized demand digits are we digits, to Products, versus now flat XXXX and $X.X guidance in fourth to and to Products billion. sales expected Products our as guidance within continue We

$X.XX currency digits. be expected combined Deflation prior guidance $X of reduce versus sales share per to $X.XX Full our are to and earnings single year low adjusted $X.XX. are to to expected

full As X.X% result, X.X% margin to is our XXXX prior X.X%. our a year to X.X% expected versus range to be EBIT guidance adjusted of

contributions. for I like closing, to our would In employees their thank significant

comments, those are and creating call to With dedication committed long-term actively our to positive I'll businesses, reflecting for back the profitability, employees our each turn to improve Cassie. of over are driving our Our value change across we shareholders.

Cassie Branscum

you, ready to Operator, Thank begin we're Q&A. Ben.

Operator

[Operator with first Instructions] from come Maklari Our Goldman questions Sachs. line Susan of the

Susan Maklari

Thank you. Good morning, everyone.

Karl Glassman

Good morning, Susan.

Susan Maklari

Bedding. question first in My is

noticed both perhaps? bit about mix of that rod for you it the in was mix little and outlook and think and talk in sales One there. steel the the given unfavorable terms profitability through that a the about the of margins, you coming what as just the implies quarters Can what's that shift things we forward

Karl Glassman

Susan. is rod Keeping for to, important. of unwind don't really you why happy mind, Tyson, Yes, you But the full if mill details kind don't the Susan?

J. Hagale

thing. sure Yes,

right. You're

down it more core Our our products, that. X% just in volume Bedding But than was in down was year-over-year.

margins helps or lower, lower maintain lower as perspective internally. scrap from us can. those they maintain also or forward, we at It of other those market carbon much trade some ]. wire that important with costs, conversion critical. operating mix possibly a to use are important, in that remember operate higher mill of And rod do it's we our as mix high tons least declines. said really filling while we an [ low our than some costs. the It ECS trade for is more and rod And you is and then Karl So us are products what just helps the full going offset trade of us But which carbon, within the expect

workforce. And a really also, it's skilled

mattresses of workforce our can full decline for we running maintaining is really also just But grids lower or reality a mill the reality usage mill box us for running the or and springs, the in a in important, of thing So where long-term us. see as the within products, we decontenting and is and U.S. finished just both the as mouse. semi-flex just mattress just important the material

terms So expectation recovery. ours, rod Longer of that headwind that trade the part of and volume margin will remains us will in of mix be a for our be the long-term #X term, business.

improvements efficiency will or mix trade lower rod a flip from be operating from takeaway certainly restructuring margin But the Our and will plan that. negative side, help. on the the or

Susan Maklari

Auto. mentioned color. moves that that business some shifting That's of through are that in Karl, in to then And are the bigger great Okay. results. those you coming reflected

As industry? And through new are year, of this for that think bit expectations that broader efforts can in talk coming some your in how shifted the you a company-specific the what's also about going given programs business? about has that on you

Karl Glassman

you Yes. completely well. happening remarks, different than as But as region in Susan, business in what's with uptake flux slow prepared the affordability. cost based what's I is differently, Said that different in issues America for happening Global North by and Europe is around well. China. in thank EV Automotive variable said has very is and as And the

a That's we're have lot They're profitable very all program the in programs. delay we out. because running legacy bad been has there that of starts. programs So not

challenge teams of are Smith the the actions Products of and of But taking, of things them. nature Sam a segment. kind stop-start Our done the can in on me Specialized that oversee The wonderful uncertainty. is job helping terms has focus we

kind those for Sam, up detail items mind, of would. comments, will any if you you clean my and of So if don't you Susan

R. Smith

into regions are sure, programs it's go would business, standpoint ways all that's you talked And from beginning about volume words our definitely that transition were think. across the of Thanks. the change been And those that at Karl. if Karl underlying business the were mentioned line going amount back impactful EV has of the to And regions. different new flat impact growth you programs biggest come right the tremendous really our these business across assumptions how the impacted in the I had the a then program flux, the each the and haven't ICE all we And words, be And Yes, new across to launched. single the and launches. in from used, that different our year, Susan, just XXXX. coming the He's been top region.

this delayed of Most that start changed or many pushed expectations one we were some with programs our to no clear of yet. even in up customers' year, going start we won another. out way those they've that been launch or really and date And really

see line now. versus year would of at So where we these our program it of about for the being thought delays beginning XX% account be the top where we

of The that reasons has a come Karl other mentioned XX% a at variety level. already from high

the at month. market I So mentioned major IHS' dropped XXXX that relatively year, be forecast this happened middle the what's to were beginning of bit the supposed year-over-year. the is year, forecasts a of little each has And flat since production that

read sure is major that ago. about. driven facing Russia, So significant market the the are dropped year difficulties forecast, now than OEMs a major was it's about everyone's their that many it business, multinational being X.X% to excluding October that And I'm and of our lower XXXX by

that, Consumers money. little looking issue. ways of for a affordability bit top On of are is to save an also

line. trade top impacting product are downs So our

Now product for a thing us. are downs bad trade not

switches Let's say, from volume. high-end a still consumers, or from mechanical pneumatic They a a money, lumbar save pneumatic massage and system they pass some to a the we manufacturer keep can to that a on but to lumbar. lumbar

choice. a the a little So top line bit, but regardless product make of profit it we drops

translates And And light is up. which they Automotive to about now. few about sales inventory year days days We going year-over-year. trade is a going car from XX ago, that News, inventory that finally, is a up XX XXX,XXX And follow a U.S. ago truck publication. the units reported weeks of and

get last also of into months think the may this we impact inventory us year. few the as we So growth

volume sums kind So that up of the impact.

question are about volume mitigate wonder, the we've I of that taking your specific what pressure. efforts been this kind to

we're variable the with say in Automotive I'll proud pulled long. So can, be over been demand team all that possibly that of time. be aligning that and to we're to lever and year line doing the our they work sustainable structure really They've every cost hard have

the things projects end to and customer. a now, footprint salaried, robotics going the well. They're going done resized They've costs, business, the using they've reduce our automation across labor got and from to across programs done. in headcount just moving across the all get further focusing regions. So few They're to several them on indirect. direct They've closer

shipping that the in Some hurt operational costs while and We've out improve moved outside freight resizing that past. efficiencies. our eliminate premium of and warehouses reshaping several can so we us inventory

on get raw And VA/VE delivers money to the savings. day-to-day, the bottom cost routine do their delivers work bottom in And resourcing to team vendors need heavily some We're savings. week-to-week line, we focusing continued where cases, those material line. that to we're

efforts and seeing. volume And all future. I ability very a have grow pressures they hold set on nicely our So think us the our these the to positive up despite we're margins impact for

Susan Maklari

Okay. quick That more for is X have great color, Sam. I ones, just maybe Ben.

when million Ben, it done there's just the think should quarter. to is, fourth of the about projects quarters, the we first laid spend in Can we that year about you've that? guide would more talk full the first you coming And timing you've what some for are? the The through of about out how in through what $XX relative that CapEx think imply X those

Benjamin Burns

this $XX the do fourth very for us rod mention yes, Yes, we And just done one dose right our that the pretty and things to heavy question. year. a million that is are that of regular see so of the the Susan, we first you're maintenance time I'd right. typically spent which in mill around front the these which $XX is morning, and million compared are we likely. feel But would thanks far. quarter, we've imply about good And what year-to-date, We've in

that, that ongoing. and we work doing, know we'll So that's that's be critical

got initiatives programs that projects starting. ready efficiency we've underway And getting some fact, that of some are those to are Bedding, in and new and already Also launch. we're growth some in

positive. that would that's are of launching the challenges then Automotive there. do Karl Sam programs and CapEx in I despite new have side, that we be quarter on And really some spending the talked the some we'll So about also say, fourth and some

heavier on it feel the bit And of are but a that ask really fourth which to exciting. new but there that's in like initiatives good things. some little a dose a I'll in maybe variety more Tyson have it's the we color Bedding, quarter, we is pretty So with things, jump some of in

J. Hagale

Yes. to normal shutdown that you Yes, they is normal is maintenance required, take both relate mean, are the capital Sterling I return based. spring. at mentioned other but projects the we

really the us refresh, And that's product for initiative a spend taking capital does for and that line quarter. capital our early will on equipment important require for both so in out next But the year. X of And a do have manufacture part spending and rolling product for also we is customers the us required. to in the fourth place of be that

really us. with help U.S. important also additional content. and both Spring customer then for efficiency, to we thing in So manufacturing And the and labor also that's have spend equipment with a material both

a So both us, return for project that and XXXX moving be forward. will also good in

Benjamin Burns

sure. Ty. Good investments, Yes. Thanks, for

Susan Maklari

about last we would can where this that Okay. note one, just And of us And prior Ben. segments the just year? to All any expectations for are your then changes each we for think walk guide? margin you relative you year-to-date, the right. through X When

Benjamin Burns

Specialized it. let's basis And the from margins to we we largely Well, start thought XXX to On margins flat. an the unfavorable mix points. basis, margins those Bedding. and talked to impact Compared And Happy expect Susan. earlier. slightly. Textile that's be we about down we with on see about do that be we thing, Sure Yes. now before, what side, Furniture, down to Flooring expect sales a would then Products

Susan Maklari

Okay. along. I'll pass it

Operator

from come the questions Raymond Griffin with of next Bobby Our line James.

Robert Griffin

imports Do what function that's on, a bit you The understand those of of numbers year-over-year. flat mix just Bedding just guess to overall a think you That of today's that? moved guess flat coming was But the me I I flat is first between domestic comments little. Karl, macro Or a kind into I was in me being the a market? better on pure around surprised Because thing a to and chat imports just -- believe maybe the I consumption consumption from standpoint. wanted little driving flush do some. XQ the the was

Karl Glassman

said thanks the Yes. answer But in But easy previously, in that of it's relatively would a was that levied, those the before came believe Tyson, amount question? imports that right comp Remember, duties as slowed. and we question. for The XQ a had unwinding. have were Bobby, are imports 'XX. you off else significant there how we

J. Hagale

thing. Sure

and in they levels [ the landed late not incremental just to of that Karl. a quarter. overhang But the year. last right, growth Bobby, We really, significant We ahead But it last then channel third there imports up the and ] see that second the we for activity lot some in quarter, the got on saw did the the quarter. quite third imports of ramp information at pretty we of at in nearly a in coming with looking some did and what e-com versus see first of kind You end in was year. especially see slowed in the year the significant came review last did channels, some we but of duties, second quarter of still

consumption. softer that's overall we And flat, to where get slower domestic and so much for production and but

Robert Griffin

floating Tyson, impact ad pulled next really helpful. understand to your us help they're here? Have they then That's kind interesting the heard back weeks couple understand. the you And interesting X-, anything crowd-out behaving just from channel of of on these spend the because there just anything with X-week on through I effect? of have Or just the how customers during election?

J. Hagale

-- closer costs, we distracted also expectation what just but to even just things a And really generally soft. October, election. as for of have you the -- high getting consumer It's think always out, been the get it's the I that's said. advertising getting Bobby. I into higher thing, Sure crowded mean,

in and our So like that's kind seasonal feel quarter. expecting fourth impact, pattern an fourth But we watching just inventories in the the overall, normal quarter. a definitely, customers still, also of

Robert Griffin

And Perfect. get can on you of in are Specialized what I for process Aerospace. you then seeing guys Products, understand the

you to So order to Cylinders kind of comment don't that a on EBITDA I bottom. how is lowest? in Hydraulic is for it the pure which in rank breakeven segment the so us could on be that terms businesses stacks just expect worth. the And analysis X feeling have the running Aerospace would its you But But guess, margins, profitability. what X strongest could my at around of helpful I of roughly up in would -- on be any color Auto potentially some versus be

Karl Glassman

That's an you, getting can Aerospace, the approach, Automotive, to Bobby. tell is but Cassie I kind answer nervous, picture going I'm Hydraulics. of interesting

Robert Griffin

from Thank those to on you. the former learned to I fit master try for. the how work questions that guy

Karl Glassman

Budd. a was you And slipped time Leggett you Bugatch made And Covered the in Budd much Platt. bit would very second. us Bobby, absolutely XX a in. and masterful, a digress friend him. be want and I you I you. Budd years, feel of to we little every miss of pleased. You That reference to that actually, for was do of kind & a did. you he way question, for thank ask

Robert Griffin

Karl. analyst, it, you. say. I words. Great Kind even better always appreciate human, I Thank

the Ben. for pay So absolutely like see here debt just to in down the I lastly Great that question question. quarter. a me, guess for

cash further savings into think can say, the $XXX some of you've and then on, and we in that wins debt coming the got models? business, interest run our down of we million out pay as Just what's

Benjamin Burns

for Thanks, the question. Yes. Bobby,

few off we'll bonds of the commercial forward, think with it looking in As a kind we paper. about pay here weeks

really be path the commercial will that deleveraging paper. is our reducing So that

$X sorry, $XXX So down that million every for million about reduce. million in $XXX going think -- $X expense reduction we in million I'm every for debt

Robert Griffin

within early restructuring. And Perfect. Congrats XQ. Very in here helpful. on the progress best luck of the

Karl Glassman

you, Thank Bobby.

Operator

with Our Keith Piper line you. questions come the of Thank from Sandler. Peter [Operator Instructions] next

Peter Keith

down. the -- yet about was I little the talked like Furniture hadn't it you I piece, that and category bit a Home was guess bit guide was sound One was confused. of does a I

notable backdrop you down something if Home that's Components, company pretty wondering And talked sequentially Geo but the or about on sales volume and I step specific? take I'm a think basis. industry did Furniture both

Karl Glassman

actually been thanks impacted some for challenges. -- is your That bedding, is furniture home probably softer know it's you home. by possible. terribly bankruptcies. is but more. you industry consumer it mind. right, The if observation It Peter, to disrupted the same degree, question. that's because I Why mean, And -- into The first absolutely question, don't is has that's furniture, industry. certainly and The has industry than But that your home industry retailer been off, the some been Sam, of you has challenged. don't plow Peter's bedding

R. Smith

points by mentioned customers, our of some Sure, our -- impact. Especially but big question, of also Karl. serviced being And some customers. at domestic our lot are Karl thanks price they're that those Asian for because the Peter. bankruptcies Yet retail a a the of

of the the and was quarter. I'd say next impact that more big comp Peter. a of a kind a during So historical is perspective issue, factor

back started as And XXXX. business, first the inventories impacted from You right our in our slowdown of middle business in especially retailers know industry-wide was XXXX Asia their rightsized up XXXX. big through in this the

Now by inventories, the QX of those lot points, were last a price especially retail lower at healthier. year,

started we orders we've almost year. more year, quite retailers happened gotten again, QX a few than China started and for ordering of last in what in a getting So

fairly decent year. were So actually our volumes China last QX

to industry soften. has continued year, the this Now

and last fewer year. chain caught about, the As chain our just up, supply than orders we've they simply talked in is were there's that way are coming

of cover. Asia U.S. factor. locations. there's some make sure to we And a a the is smaller issue other our thing I comp of another that to and production our moved want year, to of So this the U.S. we few from that At beginning

location larger stock. our the that sure out customers they in the of ordering half make started first plenty ordering of really heavy some of And are had who of year to

that off realized of quarter. By had volume and until a we they a held quarter strong they really QX third from in product their the So warehouses any new standpoint. the year, late the ordering were packed, beginning really this

that consistency So from are see we'll those them. factor. and folks more another was going And through ordering QX again,

Peter Keith

agree, to around. very on a to massively. backdrop did steel industry slowed, the pivot seems That's furniture interesting bankruptcies. accelerated do it rod comments just I Okay. might helpful. business. the the side, here stick reverse rod feels retail where that And furniture like on I there's challenged, the and shift strategic And back steel want

were sales up the a lot. So

cutting little be to a Are run should want hypercompetitive is that drive full a still forward? You volumes? bit say going and you in you And prices capacity, shift we metal order some expect margin. that to

J. Hagale

Peter, is... Hey this

Karl Glassman

-- go just yes, market want in don't some ahead, that's not the have market, been pricings Ty. to the offline. way, we're market there steel been in but -- depressed Peter why that has any been disrupting you capacity I taken

incredibly compared So please is others. we're Tyson, But as efficient elaborate. mill to -- our

J. Hagale

and market Sure mean, run keep I us our see prices the makes thing. do necessary It all exploring is around and -- like and team line. Peter, what in that mill probably and full. the that And what a determine for I is focused, or you sense know us pricing changing realization, allows to the and market is trade our pretty mill. we're actively strategy We for costs the time us our that's will to like not our that. earlier, be no, lowering mentioned market anything have

actually a is it's and strategy. to in But for makes us It's a and pricing makes a of us for not what what able market mill. serve. balance it just we're what So opportunities sense evaluation and more the sense

Peter Keith

into on sticking on any no And will the as headwind. headwind margins? that, normalize out that Is there called when eventually margin visibility a a be was and longer again Okay. metal

J. Hagale

when. predict It's to exactly difficult

mentioned, we've seen of We historical just have things the market from several over market, seen like the with the softness overall, high Karl it's seen kind in have a last that years. bit. steel the obviously But softened down the we

we've getting more we're And seen. into so a range that normal

Peter Keith

lastly, And Okay. on bit quite Again, back focusing last circle that saw a Great. on then just from sequential of segments Automotive. quarter. change to

that something a based X%. in should that, quarter? a continue the for down is on volume was air visibility, Automotive pocket while? the Is Or your this notable So third just

Karl Glassman

Sam?

R. Smith

got thing. pickup before going We Will That's Karl. to X will which factories. pickup Asian some through, reasons, that's before New big a for work as see question. we've Year do we're pickup year. We Chinese That's QX, a normal? just believe see trying a Thanks, of a Year, Yes. some still this what see And normally, great we is routine Chinese we of into New be Peter. large it as variety

Peter Keith

I Okay. Very appreciate feedback. the good.

Operator

of questions the next with Judy Our Securities. come Truist from Merrick line

Judy Merrick

Hughes. Keith for on Judy is This

domestic quarter. could Just still the fourth clarify -- sales? component the the for was down Is decline mid-single-digit of flat and kind single You pace consumption? said production looking that U.S. of a if in the digits, you're mattress you on high

J. Hagale

The impact down will the down to U.S. the in imports. the than believe the more consumption we Well, the be domestic fourth market of is quarter. market due overall

Judy Merrick

that better show And the it than then that's where industry. ComfortCore, a the performing? Did Or you quarter? Okay. how there you just through it's improvement was is little said saw

J. Hagale

just it's been over time. generally That's performing how

it market And a ComfortCore shift more time customers, of Open or certainly of obviously the also than and line Open slightly ahead with the Box some some have long over with products. our Coil the just in performance of Spring to with ComfortCore been we period Coil from of and we've is

Karl Glassman

Judy. you, Thank

Operator

floor further to like I now for no would Cassie the to at time. questions back over this turn are Branscum any closing There comments.

Cassie Branscum

and and us & joining your interest have for day. in Platt, you Leggett great Thank a

Operator

participation. conclude appreciate teleconference. does This today's your you. We Thank

You your of your time. the may rest Enjoy this disconnect lines day. at

Leggett & Platt (LEG) 29 Oct 242024 Q3 Earnings call transcript