禮恩派 (LEG) 2014 Q3 法說會逐字稿

Greetings, and welcome to the conference call. At this time, all participants are in a listen-only mode.

您好，歡迎參加電話會議。此時，所有參與者都處於只聽模式。

(Operator Instructions)

（操作員指令）

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. David DeSonier, Senior Vice President, Strategy and Investor Relations.

提醒一下，本次會議正在錄音。現在我很高興介紹您的主持人，策略和投資者關係高級副總裁戴維·德索尼爾先生。

Good morning, and thank you for taking part in Leggett & Platt's third quarter conference call. With me this mornings are the following: Dave Haffner, our Board Chair and CEO, Karl Glassman, who is President and Chief Operating Officer, Matt Flanigan, our Executive VP and CFO, and Susan McCoy, our Vice President of Investor Relations. The agenda for the call this morning is as follows. Dave Haffner will start with a summary of the major statements we made in yesterday's press release. Karl Glassman will provide segment highlights. Matt Flanigan will discuss financial details and address our outlook for the remainder of the year. And finally, the group will answer any questions that you have.

早上好，感謝您參加 Leggett & Platt 第三季電話會議。今天早上與我一起出席的嘉賓有：董事會主席兼首席執行官戴夫·哈夫納 (Dave Haffner)、總裁兼首席營運官卡爾·格拉斯曼 (Karl Glassman)、執行副總裁兼首席財務官馬特·弗拉尼根 (Matt Flanigan) 以及投資者關係副總裁蘇珊·麥考伊 (Susan McCoy)。今天上午的電話會議議程如下。戴夫·哈夫納 (Dave Haffner) 將首先總結我們在昨天的新聞稿中所作的主要聲明。 Karl Glassman 將提供部分精彩內容。 Matt Flanigan 將討論財務細節並展望今年剩餘時間的前景。最後，小組將回答您的任何問題。

Jack Crusa, who is Senior Vice President of the Company and President of the specialized product segment, is also joining us this morning to participate in the Q&A.

該公司高級副總裁兼專用產品部門總裁傑克·克魯薩 (Jack Crusa) 也將在今天上午加入我們的問答環節。

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

本次會議由 Leggett & Platt 錄製，且為受版權保護的資料。未經我們明確許可，不得轉錄、錄製或廣播此通話。您可以從 Leggett 網站的 IR 部分觀看重播。我們在網站上發布了一組包含財務資訊摘要以及分部詳細資訊的 PowerPoint 投影片。這些投影片補充了我們在本次電話會議上討論的信息，包括非公認會計準則對帳。

I need to remind you that remarks today concerning future expectations, events, objectives, strategies, trends or results constitute forward-looking statements. Actual results or events may differ materially due to a number of risks and uncertainties, and the Company undertakes no obligation to update or revise these statements. For a summary of these risk factors, and additional information, please refer to yesterday's press release and the section in our 10-K entitled forward-looking statements. I will now turn the call over to Dave Haffner.

我需要提醒您，今天有關未來預期、事件、目標、策略、趨勢或結果的評論構成前瞻性陳述。由於多種風險和不確定因素，實際結果或事件可能存在重大差異，公司不承擔更新或修改這些聲明的義務。有關這些風險因素的摘要和其他信息，請參閱昨天的新聞稿和我們的 10-K 中題為前瞻性聲明的部分。現在我將電話轉給戴夫哈夫納 (Dave Haffner)。

Good morning, and thank you for participating in our call. For the last two quarters, we have seen strong, broad based sales growth across the bulk of the Company. Sales growth within our continuing operations has improved as the year has progressed, from 2% in the first quarter, to 9% in the second quarter, to 14% in the third quarter. Importantly, nearly all of our key businesses are seeing positive sales momentum.

早安，感謝您參加我們的電話會議。在過去兩個季度中，我們看到公司大部分業務的銷售均出現強勁、廣泛的成長。隨著時間的推移，我們持續經營的銷售額成長不斷提高，從第一季的 2% 提高到第二季的 9%，再到第三季的 14%。重要的是，我們幾乎所有關鍵業務都呈現出積極的銷售動能。

Same location sales from continuing operations grew 9% during the third quarter, with strength in all of our residential businesses, automotive and machinery, partially offset by lower volume in commercial vehicle products. On August 5, the Board of Directors authorized management to proceed with activities necessary to divest the store fixtures business, or portions of that business. All of the criteria for discontinued operations have been met, and we are now classifying that business as a discontinued operation.

第三季度，持續經營業務的同地區銷售額成長 9%，其中住宅業務、汽車和機械業務均表現強勁，但商用車產品銷售下降部分抵銷了這一成長勢頭。 8 月 5 日，董事會授權管理階層採取必要措施，剝離店鋪設備業務或部分業務。所有終止經營的標準均已滿足，我們現在將業務歸類為終止經營。

Third-quarter adjusted earnings per share from continuing operations were a record $0.51, up 31% verses the adjusted $0.39 we earned in the prior year. This increase is primarily due to sales growth, a lower adjusted tax rate, and reduced share count.

第三季調整後持續經營每股收益達到創紀錄的 0.51 美元，較去年同期的調整後每股收益 0.39 美元成長 31%。這一增長主要歸因於銷售額成長、調整後稅率降低以及股份數量減少。

From a reported GAAP earnings perspective, as announced on August 19, we recognized a $39.8 million pretax, or $0.17 per share, accrual for the settlement of the US direct purchaser class portion of the polyurethane foam antitrust claims, filed against the company and numerous other defendants. This charge reduced third-quarter earnings from continuing operations by $0.14 per share, and earnings from discontinued operations by $0.03 per share.

從報告的 GAAP 收益角度來看，正如 8 月 19 日宣布的那樣，我們確認了 3980 萬美元的稅前應計費用，或每股 0.17 美元，用於和解針對該公司和眾多其他被告的聚氨酯泡沫反壟斷索賠的美國直接購買者類部分。該費用導致第三季持續經營收益每股減少 0.14 美元，終止經營收益每股減少 0.03 美元。

In the third quarter last year, earnings benefited from an acquisition-related bargain purchase gain of $0.06 per share. Third-quarter adjusted EBIT increased, and adjusted EBIT margin improved to 10.7%, reflecting the strong sales growth. A major component of our strategy since 2007 has been the optimization of our portfolio of businesses.

去年第三季度，收益受益於收購相關的每股 0.06 美元的廉價購買收益。第三季調整後息稅前利潤增加，調整後息稅前利潤率提高至 10.7%，反映出強勁的銷售成長。自 2007 年以來，我們策略的一個主要組成部分是優化我們的業務組合。

This year, we are making meaningful incremental investments in our already strong businesses. Examples of this include the acquisition of the three Sealy spring plants that we announced on July 1, investments in machinery to support the very significant growth we are seeing in Comfort Core inner springs, plant expansions in China to support rapid growth for our automotive business. And a small acquisition in the third quarter of a German-based designer of motion furniture hardware.

今年，我們對已經很強大的業務進行了有意義的增量投資。例如，我們在 7 月 1 日宣布收購三家 Sealy 彈簧工廠，投資機械設備以支持 Comfort Core 內彈簧的顯著成長，並在中國擴建工廠以支持我們汽車業務的快速成長。第三季也對一家德國運動家具硬體設計公司進行了小規模收購。

We're -- we also remain committed to improving or exiting businesses that consistently underperform our margin and return expectations. As we announced in July, we have engaged an investment banker to help with the possible divestiture of the Store Fixtures business, and are currently reviewing proposals from prospective buyers. We assess our overall performance by comparing our total shareholder return to that of peer companies on a rolling three-year basis.

我們也將繼續致力於改善或退出那些利潤率和回報預期持續低於我們的預期的業務。正如我們在 7 月宣布的那樣，我們已經聘請了一位投資銀行家來協助剝離店面設備業務，目前正在審查潛在買家的提案。我們透過將我們的股東總回報率與同行公司連續三年的回報率進行比較來評估我們的整體業績。

Our target is to achieve TSR in the top one-third of the S&P 500 over the long term, which we believe will require an average TSR of 12% to 15% per year. So far, for the three-year period that will end on December 31 of 2014, we have generated TSR of 22% per year on average, which places us above the midpoint of the S&P 500, but shy of our top one-third goal. I will now turn the call over to Karl Glassman, who will provide some additional segment comments. Karl?

我們的目標是長期將股東總回報提升至標準普爾 500 指數的前三分之一，我們認為這需要平均每年 12% 至 15% 的股東總回報。到目前為止，截至 2014 年 12 月 31 日的三年期內，我們平均每年的股東總回報為 22%，這讓我們超過了標準普爾 500 指數的中點，但未達到我們前三分之一的目標。現在我將把電話轉給卡爾·格拉斯曼，他將提供一些額外的部分評論。卡爾？

Thank you Dave, and good morning. As Dave mentioned, most of our businesses performed extremely well in the third quarter. In the residential furnishings segment, third-quarter total sales increased 19%. Same location sales increased 11%, with each of the major business units growing.

謝謝你，戴夫，早安。正如戴夫所提到的，我們的大多數業務在第三季表現都非常出色。在住宅家具領域，第三季總銷售額成長了 19%。同一地點的銷售額成長了 11%，每個主要業務部門都在成長。

Excluding acquisitions, US spring component dollar sales increased 12%. Innerspring unit volume grew 9%, with the Comfort Core premium category up 85% during the quarter. Box spring unit volume increased 2%.

不計收購，美國彈簧零件美元銷售額成長了 12%。本季度，彈簧床墊銷量成長了 9%，其中 Comfort Core 高端床墊銷量成長了 85%。床墊彈簧單元銷量增加了2%。

Sales grew 10% in international spring, primarily from market share gains and increased Comfort Core sales in Europe. Furniture component sales increased 7% in the third quarter. Volume in our seating and sofa sleeper businesses grew 9%, and motion hardware unit volume increased 6%.

國際春季銷售額成長了 10%，主要得益於市場佔有率的增加和歐洲 Comfort Core 銷售額的成長。第三季家具零件銷售額成長了7%。我們的座椅和沙發床業務的銷量成長了 9%，運動硬體的銷量成長了 6%。

Adjustable bed units grew 76% in the quarter, from a combination of new programs that were fully ramped up by the end of the quarter, and strength in our historic customer programs. Sales also increased meaningfully in fabric converting, geo components and carpet underlay.

可調式床單元在本季成長了 76%，這得益於本季末全面啟動的新專案以及我們歷史客戶專案的強勁成長。織物加工、土工零件和地毯襯墊的銷售額也大幅成長。

Third-quarter segment EBIT was negatively impacted by $32 million of the foam litigation settlement. Excluding this charge, adjusted EBIT and EBIT margin increased verses third quarter of 2013, primarily from higher sales and a $2 million insurance gain related to a facility that was impacted by Hurricane Sandy.

第三季分部息稅前利潤因 3,200 萬美元的泡沫訴訟和解金受到負面影響。除去這項費用，調整後的息稅前利潤和息稅前利潤率較2013年第三季度有所增加，主要由於銷售額增加，以及與受颶風桑迪影響的設施相關的200萬美元保險收益。

In the commercial fixturing and component segment, same location sales increased 2% in the third quarter. With the move of Store Fixtures into discontinued operations, the segment is now comprised entirely of our work furniture business, which was formally named office furniture components.

在商業固定裝置和組件領域，第三季同一地點的銷售額成長了 2%。隨著店面設備業務轉入停止營運狀態，該部門目前完全由我們的工作家具業務組成，該業務正式命名為辦公家具組件。

Sales grew in the quarter, although at a slower rate than was experienced in the first half of the year, largely from timing of programs and normal industry demand variation. EBIT was essentially flat, and EBIT margin decreased slightly. Segment EBIT margin continues to be below our target level, due to a number of factors, including under-utilized capacity and operational challenges with a Chinese joint venture. With industry demands still depressed from lower business spending and last year's added contraction in government spending, our plants continue to operate well below optimal utilization levels.

本季銷售額有所成長，但增幅低於上半年，主要歸因於專案時機和正常的行業需求變化。息稅前利潤基本持平，息稅前利潤率略有下降。由於產能利用率不足和中國合資企業的營運挑戰等多種因素，分部息稅前利潤率仍低於我們的目標水準。由於企業支出減少和去年政府支出進一步收縮導致行業需求仍然低迷，我們的工廠的運作效率仍然遠低於最佳利用率水準。

While cost reductions have been implemented over the past few years, we are working to identify more opportunities to improve efficiency. In addition, our business development activities are focused on identifying opportunities to improve our sales mix through higher-valued products.

雖然過去幾年我們已經實施了成本削減措施，但我們正在努力尋找更多提高效率的機會。此外，我們的業務發展活動專注於透過更高價值的產品尋找改善銷售組合的機會。

In the industrial materials segment, third-quarter same location sales increased 7%, primarily from higher unit volume from our rod mill and wire operations. EBIT increase in EBIT margin was essentially flat with the prior year. The dumping case brought in early 2014 by major US steel rod producers has continued to advance through the process, and final determination is set for late fourth quarter or early first quarter.

在工業材料部門，第三季同一地區銷售額成長了 7%，主要得益於我們的棒材廠和線材業務的單位產量增加。息稅前利潤的增幅與上年基本持平。 2014年初美國主要鋼棒生產商提起的傾銷案目前仍在進一步推進，最終裁定將於第四季末或第一季初做出。

Our aerospace business, which resided in the industrial materials segment, continues to perform very well domestically, and earnings should further benefit as we fully integrate our European acquisitions. In a specialized product segment, same location sales grew 13% in the third quarter. Automotive sales increased 19%, from a combination of expanded content, participation in new vehicle platforms, and demand strength in each of the major geographic markets. Same location sales increased 13% in machinery.

我們的航空航太業務屬於工業材料領域，在國內繼續表現良好，隨著我們全面整合歐洲收購，獲利將進一步受益。在專業產品領域，第三季同一地點的銷售額成長了 13%。汽車銷售量成長了 19%，這得益於產品內容的擴大、新汽車平台的參與以及各主要地理市場的需求強勁。同一地區機械產品的銷售額成長了 13%。

These combined improvements were partially offset by a 9% sales decrease in commercial vehicle products. The segment's EBIT and EBIT margin increased during the quarter, primarily from higher sales, partially offset by a $3 million litigation accrual.

這些綜合改善部分被商用車產品 9% 的銷售下降所抵銷。該部門的息稅前利潤和息稅前利潤率在本季度有所增加，主要由於銷售額增加，但 300 萬美元的訴訟費用部分抵消了這一增長。

I will now turn the call over to Matt Flanigan, who will discuss some additional financial details, along with our outlook for the remainder of 2014.

現在我將電話轉給馬特·弗拉尼根 (Matt Flanigan)，他將討論一些額外的財務細節以及我們對 2014 年剩餘時間的展望。

Thanks, Karl, and good morning everyone. Operating cash flow was once again seasonally strong in the third quarter, and grew to $132 million, which is up 14% verses the third quarter of last year. We ended the quarter with working capital at an unusually low 9.7% of annualized sales. The accrual for the foam litigation settlement caused a sizeable increase in current liabilities. Excluding this accrual, working capital was 10.7% of annualized sales, still very notably better than our target of 15%.

謝謝，卡爾，大家早安。第三季度，經營現金流再次呈現季節性強勁成長，成長至 1.32 億美元，較去年第三季成長 14%。本季結束時，我們的營運資本佔年銷售額的比率異常低，為 9.7%。泡沫訴訟和解的應計費用導致流動負債大幅增加。除去這筆應計費用，營運資本佔年銷售額的 10.7%，仍然明顯優於我們的 15% 的目標。

Based upon our current annual forecast and our normal seasonality, we expect to again generate operating cash of over $350 million for the full year. Dividends should require about $170 million of cash, and capital expenditures should approximate $100 million.

根據我們目前的年度預測和正常的季節性，我們預計全年將再次產生超過 3.5 億美元的營運現金。股息大約需要 1.7 億美元現金，資本支出大約需要 1 億美元。

As Dave mentioned, we continue to make investments to support growth and businesses and product lines where sales are strong, and for efficiency improvement and maintenance. Our incentive plans emphasize returns on capital, which include fixed assets and working capital. This emphasis, we believe, helps ensure that we are efficiently utilizing our asset base and investing capital dollars where the highest return potential exists. Returns should continue to improve, as we expand EBIT margins while controlling invested capital.

正如戴夫所提到的，我們將繼續進行投資，以支持成長和銷售強勁的業務和產品線，並提高和維護效率。我們的激勵計劃強調資本回報，包括固定資產和營運資本。我們相信，這種重視有助於確保我們有效利用我們的資產基礎，並將資本投資於具有最高回報潛力的領域。隨著我們控制投資資本的同時擴大息稅前利潤率，回報率將繼續提高。

In August, we increased the quarterly dividend by a $0.01, to $0.31 per share. As a result, 2014 marks our 43rd consecutive annual dividend increase at a compound annual growth rate of 13%. At yesterday's closing price of $35.40, the current yield is 3.5%, which is one of the highest among the 54 companies that comprise the S&P 500 dividend aristocrats.

8月份，我們將季度股利增加0.01美元，至每股0.31美元。因此，2014年是我們連續第43年增加股息，複合年增長率為13%。以昨日 35.40 美元的收盤價計算，當前收益率為 3.5%，是標準普爾 500 指數股息貴族 54 家公司中最高的之一。

We repurchased 800,000 shares of our stock in the third quarter, at an average price of $34.62, and issued 1.2 million shares, largely for employee stock option exercises. Consistent with our stated priorities for the use of excess cash flow, we will prudently buy back our stock, bearing in mind our level of cash generation, other potential opportunities to strategically grow the company, and the overall outlook for the general economy.

我們在第三季回購了 80 萬股股票，平均價格為 34.62 美元，並發行了 120 萬股，主要用於員工股票選擇權行使。按照我們所述的使用過剩現金流的優先事項，我們將審慎回購我們的股票，同時考慮我們的現金創造水準、公司策略成長的其他潛在機會以及整體經濟的整體前景。

We have a standing authorization from the Board to repurchase up to 10 million shares each year. No specific repurchase commitment or timetable has been established. However, by year end, we currently expect to have bought back approximately five million shares in 2014, and to have issued approximately three million shares to employee benefit plans. Accordingly, share repurchases and issuances in the fourth quarter may be relatively modest, since target levels of both activities have already nearly been attained.

我們獲得董事會授權每年回購最多 1,000 萬股。尚未制定具體的回購承諾或時間表。然而，到年底，我們目前預計將在 2014 年回購約 500 萬股，並向員工福利計畫發行約 300 萬股。因此，第四季度的股票回購和發行可能相對溫和，因為這兩項活動的目標水準已經接近實現。

Our financial base remains very strong, and this gives us consider flexibility when making capital and investment decisions. We ended the quarter with net debt to net capital of 34.8%, a modest decrease verses last quarter, and comfortably within our longstanding targeted range of 30% to 40%.

我們的財務基礎仍然非常強勁，這使我們在做出資本和投資決策時具有靈活性。本季結束時，我們的淨債務與淨資本比率為 34.8%，較上一季略有下降，且處於我們長期以來的 30% 至 40% 的目標範圍內。

Given our sales growth and strong year-to-date performance, we expect to again post record full-year adjusted earnings per share from continuing operations. As we announced yesterday, we are raising the low end of our prior guidance by $0.05, and now expect adjusted full-year earnings per share of $1.75 to $1.85. This revised guidance includes operating results from discontinued operations, but excludes the $0.65 per share non-cash impairment charge that was recognized in the second quarter, and the $0.17 per share foam litigation settlement that was accrued here in the third quarter.

鑑於我們的銷售成長和年初至今的強勁表現，我們預計全年持續經營調整後每股收益將再次創下歷史新高。正如我們昨天宣布的那樣，我們將先前預期的低端上調了 0.05 美元，現在預計調整後的全年每股收益為 1.75 美元至 1.85 美元。這份修訂後的指引包括來自已終止經營的經營業績，但不包括第二季確認的每股 0.65 美元的非現金減損費用，以及第三季累計的每股 0.17 美元的泡沫訴訟和解金。

Prior full-year sales guidance has been adjusted to exclude store fixture sales of approximately $185 million. Sales from continuing operations are still now expected to be $3.7 billion to $3.8 billion for the year. This represents a 6% to 9% increase verses continuing operations in 2013.

先前的全年銷售預期已進行調整，排除約 1.85 億美元的店面固定裝置銷售額。目前預計全年持續經營銷售額仍將達 37 億至 38 億美元。與 2013 年的持續經營相比，成長了 6% 至 9%。

This full-year guidance implies fourth-quarter sales from continued operations of $871 million to $971 million, representing a range of 1% to 13% growth verses fourth quarter 2013. We expect fourth-quarter earnings per share of $0.39 to $0.49, verses an adjusted $0.35 last year.

這項全年預期意味著第四季度持續經營銷售額將達到 8.71 億美元至 9.71 億美元，較 2013 年第四季度增長 1% 至 13%。

With those comments, I will now turn the call back over to Dave Haffner.

有了這些評論，我現在將電話轉回給戴夫·哈夫納 (Dave Haffner)。

Thanks, Matt. As we look ahead at the balance of 2014 and beyond, we continue to be very encouraged by the opportunities we are seeing in many of our markets. Enhancing our portfolio of businesses by identifying opportunities to grow competitively advantaged positions, while reducing our exposure to businesses that don't provide long term strategic value, remains a top priority. We believe these actions are keys to our long term success and consistent achievement of our top one-third TSR goal. And with that, I'll turn the call back over to you, Dave.

謝謝，馬特。展望2014年及以後，我們仍然對在許多市場中看到的機會感到非常鼓舞。透過尋找機會提升競爭優勢地位來增強我們的業務組合，同時減少對無法提供長期策略價值的業務的投資，仍然是我們的首要任務。我們相信這些行動是我們長期成功和持續實現前三分之一 TSR 目標的關鍵。說完這些，我將把電話轉回給你，戴夫。

That concludes our prepared remarks. We thank you for your attention, and we will be glad to answer any questions. In order to allow everyone an opportunity to participate, we request that you ask your one best question and then yield to the next participant. If you have additional questions, please reenter the queue, and we will answer those questions as well. David, we are ready to begin the Q&A.

我們的準備好的演講到此結束。感謝您的關注，我們將很樂意解答您的任何問題。為了讓每個人都有機會參與，我們要求您提出一個最好的問題，然後讓給下一位參與者。如果您還有其他問題，請重新進入隊列，我們也會回答這些問題。大衛，我們準備開始問答環節。

Thank you. We will now be conducting a question-and-answer session.

謝謝。我們現在將進行問答環節。

(Operator Instructions)

（操作員指令）

Our first question is from Josh Borstein of Longbow Research. Please proceed with your question.

我們的第一個問題來自 Longbow Research 的 Josh Borstein。請繼續回答您的問題。

Hi, good morning everyone. Thanks for taking my questions here. The first, on the sales guidance, the variance is $100 million. So pretty wide, considering there is essentially two months left in the year. What's behind that? What pieces of the business are maybe more volatile than others right now to cause the wide variance in the sales guidance?

大家早安。感謝您在這裡回答我的問題。首先，關於銷售指導，差異為 1 億美元。考慮到今年基本上只剩下兩個月的時間，所以時間跨度相當大。這背後有什麼原因？目前哪些業務部分可能比其他部分更不穩定，導致銷售預期出現巨大差異？

Josh, to start with, the range of the guidance, as we have said before, we basically develop our current quarter and full-year forecast, and then build a range around that as we see appropriate. And hopefully, we have allowed for a necessary amount of conservatism with that. You might keep in mind that the fourth quarter of last year, we did see a little bit of an acceleration. So our second quarter -- our third quarter last year grew 1.5% or so, restated for continuing ops.

喬希，首先，正如我們之前所說，指導範圍基本上是製定當前季度和全年預測，然後根據我們認為合適的範圍建立預測範圍。我希望，我們能夠考慮到必要程度的保守主義。您可能記得，去年第四季我們確實看到了一點加速。因此，我們的第二季——去年第三季——成長了 1.5% 左右，按照持續經營計算。

Fourth quarter was actually up closer to 6%. So our comps getting a little bit more difficult. That speaks, at least marginally, to the lower part of the guidance range. And obviously, we have had nice momentum in several of our businesses. So we feel pretty good about, I think, the strength that we are seeing. But, Dave or Karl, if there is anything you want to add?

第四季的增幅實際上接近 6%。因此我們的比賽變得有點困難。這至少在某種程度上說明了指導範圍的下限。顯然，我們的多項業務都取得了良好的發展勢頭。因此我認為，我們對所看到的力量感到非常滿意。但是，戴夫或卡爾，還有什麼要補充嗎？

The other part of Josh's question had to do with which businesses may have higher volatility. And quite honestly, with the businesses that we have in the portfolio now, there isn't a significant difference among business units relative to volatility. Seasonality also has been somewhat improved, with the move of store fixtures to discontinued operations. Karl, any other comments?

Josh 問題的另一部分與哪些企業的波動性可能更高有關。坦白說，就我們目前投資組合中的業務而言，各個業務部門之間的波動性並沒有顯著差異。隨著店鋪設備轉移至停止營運狀態，季節性也有所改善。卡爾，還有其他評論嗎？

Yes, the only thing that I -- consumer vehicle products continues -- commercial vehicle products continues to be an area that is difficult to forecast, just because of the fleet nature of that. But the residential businesses, the auto is strong, continues to be strong, and we're optimistic. We admit that that guidance is wide, but we expect to be within that range. And I would expect that we would be in the midpoint or the upper end of it. But we'll see.

是的，我唯一知道的是——消費性汽車產品仍在繼續——商用汽車產品仍然是一個難以預測的領域，只是因為它的車隊性質。但住宅業務和汽車業務表現強勁，並且持續保持強勁，我們對此持樂觀態度。我們承認，該指導範圍很廣，但我們預計會在這個範圍內。我預計我們會處於中間點或上端。但我們會看到。

Great. Thank you for that. And then just a question on the adjustable base has grew nicely, and I realize much of that comes from recent product wins. But can you also speak to the organic demand trends out there? If you're seeing any meaningful uptick in demand patterns that would lead you to believe that attachment rates are increasing?

偉大的。謝謝你。然後，關於可調節底座的問題得到了很好的發展，我意識到其中很大一部分來自於最近產品的成功。但您也可以談談那裡的有機需求趨勢嗎？如果您看到需求模式出現任何有意義的上升，這會讓您相信附著率正在上升嗎？

Josh, again, this is Karl. I know that you participated in the conference call last night of Select Comfort. They mentioned that their Flex Fit, or their adjustable base program, has grown significantly. I think they're pleased with their attachment rates. We have 100% of that business, so we are beneficiary by their focused growth.

喬希，再次重申一下，我是卡爾。我知道您參加了昨晚的 Select Comfort 電話會議。他們提到，他們的 Flex Fit（即可調節底座計劃）已經取得了顯著的發展。我認為他們對自己的依附率感到滿意。我們擁有該業務的 100％，因此我們從他們的專注成長中受益。

We continue to see growth in both OEM manufacturer programs and retail programs. So the category very much is being positioned to the consumer, by a number of manufacturers and retailers, as a lifestyle product. The category grows, and we expect it to continue to grow.

我們繼續看到 OEM 製造商計劃和零售計劃的成長。因此，許多製造商和零售商將這一類別定位於面向消費者的生活方式產品。這個類別正在成長，我們預計它將繼續成長。

And the EBIT on those bases, Karl, is, from what I understand, maybe not be as good as the segment core, but getting better. Is that the right way to think about it?

卡爾，據我所知，這些基礎上的息稅前利潤可能不如核心部分那麼好，但正在好轉。這是正確的思考方式嗎？

Yes. That as we ramp up that volume, that it has been a challenge for us. Our people deserve a tremendous credit for getting that much product out of our facilities and our distribution infrastructure. As time passes, we'll get better at that, but the margins are below the company average. But it is very, very good business.

是的。隨著我們產量的增加，這對我們來說是一個挑戰。我們的員工理應受到高度讚揚，因為他們從我們的設施和分銷基礎設施中生產出瞭如此多的產品。隨著時間的推移，我們會做得更好，但利潤率低於公司平均值。但這確實是一門非常非常好的生意。

And I had heard over, in parts of September, there were some supply issues with some of the bases. I am not sure if that was Leggett bases or not. But did you experience anything like that in September?

我聽說，九月的部分基地出現了供應問題。我不確定那是不是 Leggett 基地。但你在九月經歷過類似的事情嗎？

We are very pleased with the fact that we kept up with demand during September.

我們很高興在九月滿足了需求。

Great, I appreciate it. I will defer to others, and hop back in the queue. Thank you.

非常好，我很感激。我會聽從其他人的意見，然後回到隊列。謝謝。

Thank you, Josh.

謝謝你，喬希。

Our next question is from Budd Bugatch from Raymond James.

下一個問題來自 Raymond James 的 Budd Bugatch。

Good morning, Dave, Dave, Karl, Susan, Matt. Thank you for taking my question. Comfort Core's numbers are just fabulous, Karl. Maybe put us -- give us a little color on what size it is today? And what's the duration of that kind of comparison? And how much of it is either sell-in or sell-through? And maybe put some color around that 85% unit growth?

早安，戴夫、戴夫、卡爾、蘇珊、馬特。感謝您回答我的問題。卡爾，Comfort Core 的數字真是太棒了。也許可以給我們一些關於它現在的尺寸的資訊？這種比較的持續時間是多久？其中有多少是直接銷售或銷售過？也許可以為 85% 的單位成長率添加一些色彩？

Budd, it's -- Comfort Core now is about 17% of our organic business. So I am not including the three Sealy component plants. The Tempur Sealy guys would have to tell you what their mix of Comfort Core is. But it continues to grow as a category. We expect that it will continue to grow. It was about 11% of total sales a year or so ago, but I don't know that exact point in time. But it continues to expand.

巴德，Comfort Core 目前約占我們有機業務的 17%。所以我沒有包括這三個 Sealy 成分工廠。 Tempur Sealy 的員工必須告訴您他們的 Comfort Core 混合物是什麼。但作為一個類別，它仍在持續成長。我們預計它還將繼續增長。大約一年前，它佔總銷售額的 11% 左右，但我不知道具體時間點。但它還在繼續擴大。

As you know, dollars go with it. We have no expectation of a slowdown. We continue to invest significant capital dollars. We believe that we own the most efficient Comfort Core productivity, from a machinery perspective, in the world, and we are very proud of that. So as that category grows, we'll grow with it, and our profitability will be enhanced.

正如你們所知，美元隨之而來。我們並不認為會出現經濟放緩的情況。我們繼續投入大量資金。我們相信，從機械角度來看，我們擁有世界上最高效的 Comfort Core 生產力，我們對此感到非常自豪。因此，隨著該類別的成長，我們也會隨之成長，我們的獲利能力也將增強。

And let me just -- if I can -- one more area of that. What is the implication of that, then, for the open core? And what's the cannibalization against other parts of the business?

如果可以的話，請容許我再談一談這個方面。那麼，這對開放核心意味著什麼呢？那麼對業務的其他部分會造成什麼影響呢？

There is some cannibalization, but that's a good trade for us. The -- and to give better answer, the question you asked earlier, if -- what's the capability of that category? Comfort Core in Europe is about 50% of total mattress cores. We expect that it may grow to that level. Certainly, the growth of hybrid in this country, and Canada in particular, has helped that. So we'll take that cannibalization all day.

雖然存在一些蠶食，但對我們來說這是一筆很好的交易。為了更好地回答您之前提出的問題，如果—該類別的能力是什麼？歐洲的 Comfort Core 約佔床墊芯總量的 50%。我們預計它可能會成長到這個水平。當然，這個國家，特別是加拿大混合動力汽車的發展對此起到了推動作用。所以我們會整天進行這種蠶食。

And Budd, this is Dave. You know the application of Comfort Core and furniture cushions really is -- and that has gained some momentum. And that doesn't have any cannibalization for us involved.

巴德，這是戴夫。您知道舒適核心和家具墊的應用確實如此 - 而且已經獲得了一些發展動力。這對我們來說並沒有任何損害。

We didn't have Marshall units before in the seating?

我們之前的座位上沒有 Marshall 裝置嗎？

We had some Marshall units in seating, but nothing like it has happened in the last few months.

我們在座位上安裝了一些 Marshall 裝置，但過去幾個月沒有發生過類似的事情。

But what's happening is, there is Marshall in the deck of upholstered seating, but there is a growing application of the product in the cushion itself, as a replacement for foam. Because of the durability and resilience characteristics, the lack of set that a Comfort Core provides verses foam. So that is all growth.

但實際情況是，雖然 Marshall 被用於軟墊座椅甲板，但該產品在坐墊本身的應用卻越來越多，作為泡棉的替代品。由於耐用性和彈性特性，舒適核心與泡棉相比缺乏固定性。這就是全部的成長。

Okay. I have seen Marshall units inside cushions for -- when I was in the business, so a long time ago.

好的。在我從事這個行業的時候，我已經在墊子裡看到 Marshall 裝置，那是很久以前的事了。

Not to the extent that they're in place today.

還沒有達到今天這樣的程度。

Agreed. Okay. Thank you very much. I'll hop back.

同意。好的。非常感謝。我會跳回來。

Thanks.

謝謝。

Our next question is from John Baugh of Stifel.

下一個問題來自 Stifel 的 John Baugh。

Thank you, and good morning, and congratulations on the strength. I wanted to follow up on that Comfort Core. If you took 17% waiting, and it's up 85%, if that number is in your inner spring, which I think you put at plus 9%, it would imply a pretty significant negative number. But if there is some of that going into furniture, then maybe not as negative. Can you help me with all of that, Karl?

謝謝，早安，恭喜你的力量。我想跟進舒適核心。如果您花費 17% 的時間等待，而它已經上漲了 85%，如果這個數字處於您的內在彈簧中，我認為您將其設置為正 9%，那麼它將意味著一個相當大的負數。但如果其中一部分用於家具，那麼可能就不會那麼糟糕了。卡爾，你能幫我解決所有這些問題嗎？

I don't have all that math, but your assumptions are correct.

我不太懂數學，但你的假設是對的。

And John, that's one of the reasons I made my comment.

約翰，這就是我發表評論的原因之一。

Okay. Could we -- since we have Jack on the call, I am curious on the automotive side. A couple of things. Number one, what your visibility is, I don't know, one year, two years, three years out to that business? You've had sizeable numbers now for several quarters. Maybe some kind of guide to what the spread might be in your rate of sales verses, say, global auto production?

好的。我們可以嗎？ 由於傑克也參加了電話會議，所以我對汽車方面的情況很好奇。有幾件事。第一，我不知道您對該業務的預期是一年、兩年還是三年？現在已經連續幾個季度獲得了相當可觀的數字。或許能提供一些指導，來說明您的銷售率與全球汽車產量之間的差距有多大？

Yes, John. A couple of quarters ago, Karl said that our growth rate would exceed the industry by about ten points. And still feel real good about that. And from a visibility standpoint, most of the orders that we book today don't start production for 18 to 24 months. So probably, outward visibility in automotive is as good as we've got anywhere in the company. And so what we forecast out for the next two to three years, there are some years that it will be up a little, and some that will be down a little from that average, depending on when new programs start. But on average, we feel good about the -- at least the next three or four years of enduring 10 point above industry growth rates.

是的，約翰。幾個季度前，卡爾說我們的成長率將超過產業約 10 個百分點。我對此仍感覺很好。從可見性的角度來看，我們今天收到的大多數訂單要 18 到 24 個月才會開始生產。因此，汽車行業的外部可見性可能與我們公司內部的任何地方一樣好。因此，我們預測未來兩到三年，有些年份，這一數字會略有上升，有些年份，這一數字會略有下降，這取決於新項目何時啟動。但平均而言，我們對此感到滿意——至少在未來三、四年內，我們的成長率將高於產業成長率 10 個百分點。

Jack, are there pricing contracts on that volume that is coming? And any comment on margin, as it relates to the automotive business going forward verses where it has been?

傑克，對於即將購買的這批產品有定價合約嗎？您對於利潤率有何評論？

There are contractual price adjustment obligations in most of those programs, for at least the first two or three years. And we do build that into our estimates. But we have -- I think we do a really good job, within that business unit, of using the tools, Six Sigma, continuous improvement, to drive costs down. We set targets every year, and they have done a really good job of meeting those. So the expectation is that we'll match the pricing adjustments with cost adjustments. So relative to historical margins, we don't anticipate that -- or we do anticipate that we'll be able to maintain those historical margins in automotive going forward.

大多數此類計劃都規定了合約價格調整義務，至少在最初兩三年內是如此。我們確實將其納入了我們的估算中。但我認為，我們在該業務部門內確實做得很好，利用六西格瑪、持續改善等工具來降低成本。我們每年都設定目標，而他們也確實出色地實現了這些目標。因此，我們期望價格調整與成本調整相符。因此，相對於歷史利潤率，我們預計不會出現這種情況——或者我們預計未來我們將能夠維持汽車產業的歷史利潤率。

Great. If I could sneak one more quick one in for Karl. Is there any way in the adjustables to break out what are the program wins verses an organic growing number in adjustables? Thanks.

偉大的。如果我可以再偷偷地為卡爾做一次快速的進攻的話。在可調變數中，有沒有什麼方法可以分辨程式優勢與可調變數中的有機增長數？謝謝。

John, yes, there is a way to break that out. We have that data, and I am not going to give it to you. (laughter)

約翰，是的，有辦法解決這個問題。我們有這些數據，但我不會把它給你。 （笑聲）

Okay.

好的。

Appreciate the swing at it.

欣賞它的揮桿。

Thank you.

謝謝。

Thanks.

謝謝。

Congratulations. Good luck.

恭喜。祝你好運。

Thanks, John.

謝謝，約翰。

Our next question is from Herbert Hardt from Monness, Crespi, Hardt.

我們的下一個問題來自 Monness, Crespi, Hardt 的 Herbert Hardt。

Good morning.

早安.

Hi, Herb.

你好，Herb。

I have actually two questions. One is, there has been a lot of talk in the media regarding weakness in Europe, and I am curious as to what you've seen?

我實際上有兩個問題。一是，媒體對歐洲經濟疲軟進行了大量討論，我很好奇您看到了什麼？

Herb, this is Karl. We are very pleased. Our European business tends to be heavy weighted to auto. There has been significant growth in European auto year to date. That continues, certainly continued in the third quarter. The second largest part of Leggett's business in Europe is bedding. Units were up 3%. Dollar is up much greater than that, because we are dealing with that same Comfort Core growth. So Europe, as we speak, continues to perform extremely well in both of those two key product categories.

赫伯，這是卡爾。我們非常高興。我們的歐洲業務往往專注於汽車業務。今年迄今，歐洲汽車銷售量大幅成長。這種情況肯定會持續到第三季。床上用品是 Leggett 在歐洲的第二大業務領域。單位數量上漲了 3%。美元的漲幅遠高於這個數字，因為我們面臨著同樣的舒適核心成長。正如我們所說，歐洲在這兩個關鍵產品類別中繼續表現出色。

Thank you. The other question is, since you are not in the top one-third on the TSR, what is the difference, in percent, in terms of what's received in the bonus pool?

謝謝。另一個問題是，由於您不在 TSR 的前三分之一之內，那麼就獎金池所獲得的金額而言，百分比差異是多少？

The TSR program, if we are at midpoint of the S&P 500, it pays out about 75% of the target pay out. And then if you are below the 50 percentile, it decreases 2% for every 1% of ranking. If you are above 50%, it's geared more strongly to encourage that. But it's a 4% gain, and pay out for every 1% of ranking. Herb, does that make sense? Did you follow that?

如果我們處於標準普爾 500 指數的中間點，TSR 計劃將支付目標支出的約 75%。如果您的排名低於 50 百分位，則每下降 1% 的排名就會下降 2%。如果您超過 50%，我們會更有力地鼓勵您這樣做。但這是4%的收益，每排名上升1%就會支付報酬。赫伯，這有道理嗎？你明白了嗎？

Yes. Yes, I got it. Thank you very much.

是的。是的，我明白了。非常感謝。

Our next question is from Daniel Moore from CJS Securities.

下一個問題來自 CJS Securities 的 Daniel Moore。

Good morning. Thank you for taking the questions. I wanted to focus a little bit on cash flow. Obviously, you have done a tremendous job in terms of working capital management; you're down well below the long term target. Talk about, as we look out to 2015 and beyond, the potential to bring working capital down further as a percentage of revenue? Or should we expect that to maybe trend a little bit higher? And is the 15% just too conservative, as we look out?

早安.感謝您回答這些問題。我想稍微關心一下現金流。顯然，您在營運資金管理方面做了大量的工作；你已經遠低於長期目標了。展望 2015 年及以後，我們能否談談將營運資本佔收入的百分比進一步降低的可能性？或者我們應該預期這種趨勢可能會略有上升？那麼，從我們的角度來看，15%是否太保守了？

Dan, this is Matt. I will jump in first. It's a good question, certainly a point of conversation we've had routinely. It will be -- first of all, we are very proud of how well the operating teams have done to drive that working capital performance to the level that you saw again reflected here in the third quarter. And again, it's all three big pieces of working capital that we really pay such close attention to: receivables, inventory, and on liability side, the payables.

丹，這是馬特。我先進去吧。這是一個好問題，當然也是我們經常討論的話題。首先，我們對營運團隊的出色表現感到非常自豪，他們推動營運資本績效達到了您在第三季再次看到的水平。再次強調，我們非常密切關注營運資本的三大部分：應收帳款，庫存，以及負債方面的應付帳款。

As store fixtures moves to discontinued status, the working capital profile of the company will change a bit. And probably -- and will require less working capital that has typically been, on average, used in that business unit. So that will naturally also cause us to revisit, I think, the 50% target that we've had for quite some time. And again, a lot of detailed activities, in each one of those asset and liability categories, that are both operational in nature, as well as at the corporate level, things we are trying to do to assist our various business units. Karl, I guess I'd hand it to you for whatever else you would add to that focus.

隨著商店設備轉為停用狀態，公司的營運資金狀況將會發生一些變化。並且可能 — — 所需的營運資金比該業務部門通常平均使用的營運資金要少。因此，我認為這自然也會促使我們重新審視我們已經有一段時間的 50％ 的目標。再次強調，在每一個資產和負債類別中，都有很多詳細的活動，這些活動既是營運性質的，也是公司層面的，我們正在嘗試做一些事情來協助我們的各個業務部門。卡爾，我想無論你還想添加什麼其他內容，我都會把它交給你。

No, just -- I agree with what Matt said. It continues to be an area of significant focus. We -- I don't know how low that number can go. Mix of business changes that pretty significantly. Store fixtures isn't as working capital efficient as the other businesses. So it's a high area of focus.

不，只是——我同意馬特所說的。它仍然是人們重點關注的領域。我們——我不知道這個數字還能低到什麼程度。業務組合發生相當大的變化。店鋪設備的營運資金效率不如其他業務。因此，這是一個備受關注的領域。

Yes, and I think that having it a critical element in our overall bonus program has really assisted. I know I am repeating what was said earlier, Matt. But all of the people have given a very high priority on reining in inventories and receivables, and expanding payables for practical, and we will continue do that. 15% may be too conservative for the product mix that we currently have. And if so, then we'll adjust that down appropriately.

是的，我認為將其作為我們整體獎金計劃的關鍵要素確實有幫助。我知道我正在重複我之前說過的話，馬特。但所有人都高度重視控制庫存和應收帳款，並擴大實際應付帳款，我們將繼續這樣做。對於我們目前的產品組合來說，15% 可能過於保守。如果是這樣，那麼我們會適當地下調。

That's helpful. And maybe just moving down the cash flow statement, still targeting $100 million CapEx this year. Just talk about -- I know you are not looking to give guidance yet for 2015. But directionally, the types of projects that you are looking at over the next 12 months? And whether that's a reasonable number for next year? Or you think that can move higher or lower?

這很有幫助。也許只是降低現金流量表的金額，今年的目標仍是 1 億美元的資本支出。只是談談——我知道您還不打算為 2015 年提供指導。 但是從方向上講，您正在考慮未來 12 個月的專案類型是什麼？對於明年來說這個數字是否合理？或者您認為它能夠上漲或下跌嗎？

Yes, I expect that number to be a larger number in 2015, because of investment in our automotive programs, as Jack spoke to, that we are adding capacity. So that's one big area. The other is, there is continued investment in Comfort Core. And especially with the acquisition of those three Sealy component plants, we need to invest in the capability and capacity of those machines.

是的，我預計 2015 年這個數字會更大，因為我們對汽車項目的投資，正如傑克所說的，我們正在增加產能。這是一個很大的領域。另一個是，對 Comfort Core 的持續投資。特別是在收購這三家 Sealy 零件工廠之後，我們需要對這些機器的能力和產能進行投資。

The third area is, we continue to invest in efficiency and quality improvements in our steel mill. That facility in Sterling performs extremely well, but it is one that is pretty capital intensive. So I don't have a number for you for 2015, but the bias is certainly up from that $100 million that we're forecasting in 2014.

第三個領域是，我們持續投資於鋼廠的效率和品質改進。斯特林的工廠表現非常出色，但是資本密集程度相當高。因此，我無法為您提供 2015 年的具體數字，但偏差肯定高於我們預測的 2014 年 1 億美元。

That's helpful. And lastly, just maybe talk a little bit about the acquisition pipeline, if there is anything -- obviously, you can't divulge until it is there. But whether it's the -- more active? And maybe some of the areas that you are more focused on?

這很有幫助。最後，也許可以稍微談談收購管道，如果有的話——顯然，在沒有完成之前你不能透露。但它是否更加活躍？或許還有一些您更關注的領域？

Dan, it's Dave. It's about what it's been, as far as activity, for the last few quarters. Several interesting potentials that we are looking at, and doing some preliminary diligence on. I know I mentioned somewhat cryptically earlier, in a previous conference call, that there -- some of those were foreign. And what I had in mind, of course, was that German-based acquisition that we recently did. And indeed, some of the other businesses that we are looking at right now fall outside of North America. But it hasn't gotten a lot frothier. But there are several targets in there that we are looking at as we speak.

丹，我是戴夫。就活動而言，它是關於過去幾個季度的情況。我們正在研究一些有趣的潛力，並對其進行一些初步調查。我知道，我在之前的電話會議中曾含糊地提到過，其中一些是外國人。當然，我想到的是，我們最近進行的那次德國收購。事實上，我們目前正在關注的其他一些企業位於北美以外的地區。但它並沒有變得更加泡沫化。但我們正在談論其中的幾個目標。

Very helpful. Thanks again.

非常有幫助。再次感謝。

Our next question is from Allen Zwickler from First Manhattan.

我們的下一個問題來自第一曼哈頓的艾倫·茲威克勒 (Allen Zwickler)。

Good day.

再會。

Hi, Allen.

你好，艾倫。

How are you?

你好嗎？

Doing well. Thanks.

做得很好。謝謝。

Congratulations for doing a great job, number one. Secondly, typically, there is a lag -- I am going back too long -- between housing starts and your residential business. Is that part of what you are seeing now? That's somewhat of a macro question. But it would seem like over time, that has been the trend, that housing starts start to pick up, and then you start to see some increase in volume. Is that true to form? Or is there something else going on relative to the residential side?

第一，祝賀你做出了出色的工作。其次，通常情況下，新屋開工和住宅業務之間存在一個滯後——我回溯得太久了。這就是您現在看到的一部分嗎？這是一個宏觀問題。但隨著時間的推移，似乎出現了這樣的趨勢，即住房開工量開始回升，然後你開始看到數量增加。這是事實嗎？或是與住宅方面有關的還有其他事情發生嗎？

Allen, this is Karl. That -- you are correct. There is a lag. The lag is shortest in our carpet underlay business. That's why you have seen some strength there. There is some market share gains there, as well.

艾倫，這是卡爾。那——你是對的。存在滯後。在我們的地毯襯墊業務中，滯後時間是最短的。這就是為什麼你在那裡看到了一些力量。那裡的市場份額也有一些增長。

But our best guess of the lag is year. So as those housing statistics continue to gradually improve, that theoretically and most probably, the strength in our first, our second quarter, and then third quarter of this year is based on the housing numbers that we started to see improve mid-last year. So if that theory holds, that the continued growth that we see, and the results that have been published in the last few days, should bode well for 2015.

但我們對於滯後時間的最佳猜測是一年。因此，隨著這些住房統計數據繼續逐步改善，從理論上講，我們今年第一季、第二季和第三季的強勁表現很可能是基於我們去年年中開始看到的住房數據的改善。所以，如果這個理論成立，那麼我們看到的持續成長以及過去幾天公佈的結果，應該對 2015 年來說是一個好兆頭。

Okay, and just one other is on the auto side. Is it that you are getting more content? I am just trying to ascertain what it is about the auto business. Is it more content? Is it just more cars? You know what I am -- I am just trying to understand what it is that's driving that business, at this point? If you can differentiate between the two?

好的，另外只剩一個是在汽車方面。您是否獲得了更多內容？我只是想確定汽車產業到底是怎麼回事。內容還多嗎？只是車輛變多了麼？你知道我的意思嗎——我只是想了解現在到底是什麼在推動這項業務的發展？您能區分這兩者嗎？

Yes, Allen, this is Jack. It is a combination of content. And when we talk about content, we would look at a lumbar support mechanism that might be a two-way manual, which could move to a two-way power, which could move to a four-way power with massage. And we see that migration in the market to higher and higher specifications.

是的，艾倫，這是傑克。它是內容的組合。當我們談論內容時，我們會考慮一種腰部支撐機制，它可能是雙向手動的，可以轉換為雙向電動的，也可以轉換為帶按摩的四向電動的。我們看到市場正向越來越高的規格邁進。

In addition, we are growing our motor cable and actuator business very well. And the beauty of that is that in those markets, we are a fairly small player, so we see a lot of runway. So in Asia, as that market grows production, we will follow. In the more mature markets, it truly is an improving content, and an expansion in some of those product categories like motors and cables and actuators.

此外，我們的馬達電纜和執行器業務也發展良好。它的美妙之處在於，在這些市場中，我們是相當小的參與者，因此我們看到了許多機會。因此在亞洲，隨著該市場產量的成長，我們也會跟進。在更成熟的市場中，它確實是一個不斷改進的內容，並且在某些產品類別（如馬達、電纜和執行器）中有所擴展。

One thing that has also been very helpful is the marketing efforts by the OEMs to use many of the comfort features which Leggett provides as a standard, now, in competing with their peer OEM. Where a particular -- maybe a four-way lumbar, in the past, was an up-charge, it's now part of a standard package, which they use to compete one against the other. So that's been (technical difficulty).

另一件非常有幫助的事情是，OEM 廠商在與同行 OEM 競爭時，大力進行行銷，將 Leggett 提供的許多舒適功能作為標準。在過去，四向腰部支撐可能需要額外付費，但現在它已經成為標準配置的一部分，各家公司用它來相互競爭。這就是（技術難題）。

Great. Thank you again, and congratulations.

偉大的。再次感謝您，並向您表示祝賀。

All right. Thanks, Allen.

好的。謝謝，艾倫。

Our next question is from Keith Hughes from SunTrust.

下一個問題來自 SunTrust 的 Keith Hughes。

Actually this is Judy Merrick on for Keith Hughes. And I was just wondering, if you -- just to follow up on an earlier question in residential, in the inner spring units, you mentioned last quarter, it was uneven month to month. Can you talk a little bit more about what you saw organically in that to get to your 9%, aside from Comfort Core? And trends in this quarter?

實際上，這是朱迪·梅里克 (Judy Merrick) 代替基思·休斯 (Keith Hughes) 表演的。我只是想知道，如果您 - 只是為了跟進先前關於住宅、內彈簧單元的問題，您提到上個季度，每個月的情況都不均衡。除了舒適核心因素之外，您能否再多談談您在實現 9% 的過程中還看到了哪些因素？本季的趨勢如何？

Yes, Judy, this is Karl. The numbers that I am going to give you is the sequence of sales change during the third quarter by month, but it will include Comfort Core. Okay? I do want to make clear that all of the Comfort Core statistics that we are giving you, that 85% growth, is all bedding. So the commentary on furniture is aside from that growth. But -- yes, in July, units were up 9%, August up 6%, and September up 12%. So there is the 9% in aggregate. Probably the next natural question is, what are we experiencing in October to date? On purely organic, it looks like sales will be up about 3% in units.

是的，朱迪，這是卡爾。我將給您的數字是第三季按月變化的銷售序列，但它將包括舒適核心。好的？我確實想明確說明的是，我們提供給您的所有舒適核心統計數據，即 85% 的增長率，都是與床上用品相關的。因此，對家具的評論與這種增長無關。但是——是的，7月份，銷量上漲了9%，8月份上漲了6%，9月份上漲了12%。所以總計起來是 9%。可能接下來自然而然的問題是，截至目前為止我們十月經歷了什麼？從純粹的有機角度來看，銷售額似乎將成長約 3%。

It would be greater than that in dollars because of the Comfort Core mix. The reason -- the first week of October was pretty darn soft, actually. And then what we experienced, to be a little more forthcoming, is we were really surprised at the strength of our bedding sales post-Labor Day. Usually, there is a little bit of a cliff the week after Labor Day. The follow-through post-Labor Day was really, really strong. And then there was a little step function back the first week of October, and then we have seen 5% growth rate those next two weeks. So today, yes, I would expect the October to come in at about 3%.

由於採用了 Comfort Core 混合材質，其金額將高於此數字。原因是——實際上，十月第一週的業績相當疲軟。然後，我們的經驗是，更坦白地說，我們對勞動節後床上用品銷售的強勁勢頭感到非常驚訝。通常，勞動節後的一週會出現一些小困難。勞動節後的後續行動確實非常強勁。然後在十月的第一周出現了一個小的階梯函數，然後我們看到接下來的兩週增長率為 5%。所以今天，是的，我預計10月的成長速度將達到3%左右。

Okay. Great. Thank you very much.

好的。偉大的。非常感謝。

Thanks, Judy.

謝謝，朱迪。

Your next question is follow-up from Josh Borstein from Longbow Research.

您的下一個問題是來自 Longbow Research 的 Josh Borstein 的後續問題。

Just another question on auto, looking at the incremental margins there. If I try to back out CVP and machinery, it looks like the business is already teens or better margin. Where do you think that goes from here?

關於汽車的另一個問題，看看那裡的增量利潤。如果我嘗試退出 CVP 和機械，看起來業務的利潤率已經達到十幾歲或更高了。您認為接下來會發生什麼事？

I would -- I don't have any reason to believe that it's going to change significantly up or down. Most of the new programs have been one with consistent quoting philosophies. And we do a really -- I think we do a really good job of delivering more functionality, generally at a lower cost, and at a lighter weight. And all of those things are just really darned important to the auto industry, and investing in the innovation to drive that. So that requires a return on investment that you would expect. So I expect that we will continue to be consistent in the range that we have been experiencing.

我沒有任何理由相信它會發生大幅的上升或下降。大多數新程式都具有一致的引用理念。而且我們確實——我認為我們在提供更多功能方面做得非常好，而且成本更低，重量更輕。所有這些對汽車產業來說都非常重要，投資創新可以推動這一發展。因此，這需要您預期的投資回報。因此我預計我們將繼續保持在目前經歷的範圍內。

And Josh, not that everything that we sell through the automotive group is patented, but a large percentage of it, indeed, is protected by intellectual property, and makes it somewhat unique. Doesn't mean it can't be substituted for, but that's part of that up-front cost that Jack's implying there.

喬希，並不是說我們透過汽車集團銷售的所有產品都獲得了專利，但其中很大一部分確實受到智慧財產權保護，並且具有一定的獨特性。這並不意味著它不能被替代，但這是傑克暗示的前期成本的一部分。

Okay. Thank you for that. And then Karl, just a point of clarification. You said in Europe, 50%, I think, of the springs sold there are Comfort Cores, and that compares to the US, which is 17%. Is that right?

好的。謝謝你。然後卡爾，只是想澄清一點。您說在歐洲，我認為那裡銷售的彈簧中有 50% 是舒適芯彈簧，而美國這一比例為 17%。是嗎？

Yes, directionally, Josh. The macro Europe number is approximately 50%. Just as a point of clarity, in the US, that 17% is a percentage of Leggett's total volume historically, from an organic standpoint. So you have to take the Tempur Sealy mix and the Simmons mix on top of that. Both of those would index to a higher percentage of Comfort Core than the rest of the industry. So I don't know what the total US market is; it's nowhere near that 50% in Europe.

是的，從方向上來說，喬許。宏觀歐洲的數字約為50%。需要明確的是，在美國，從有機角度來看，17% 是 Leggett 歷史總銷量的百分比。因此，您必須在此基礎上採用 Tempur Sealy 混合物和 Simmons 混合物。這兩者都比行業中的其他公司具有更高的舒適核心百分比。所以我不知道美國市場的整體狀況是怎樣的；在歐洲，這一比例還遠未達 50%。

Okay. Great. And then just last, could you update us on wire rod pricing? Where we are now? And what the expectations are for margins going forward?

好的。偉大的。最後，能否向我們介紹一下線材價格？我們現在在哪裡？對未來的利潤率預期是什麼？

Yes, Josh, that -- on the pricing side, it's been relatively flat so far this year. What has helped us is that scrap costs have reduced. You will remember that we have spoken in the past about the spread, or the margin squeeze, that we started to experience in November, most acute in December of last year, continued to be an issue in January and February. Most of that pricing pressure brought on by the dumping of Chinese-produced, primarily low carbon rods. That has been mitigated to a great degree, so the spreads have recovered. So that is a year-on-year benefit that we'll experience in 4Q and first Q of next year.

是的，喬希，就定價方面而言，今年到目前為止一直相對穩定。對我們有幫助的是廢料成本降低了。大家會記得，我們​​過去曾談到利差或利潤擠壓問題，這個問題從去年 11 月開始出現，在去年 12 月最為嚴重，並在 1 月和 2 月持續存在。大部分的定價壓力是由中國產（主要是低碳）魚竿的傾銷引起。這一問題已在很大程度上得到緩解，因此利差已經恢復。因此，我們將在第四季和明年第一季體驗到年成長。

Okay. So rod prices are stable, whereas before they were being depressed because of the dumping that's no longer taking place. At the same time, scrap prices are going a little bit lower, so the spread is getting better. Is that right?

好的。因此，桿材價格保持穩定，而先前由於傾銷現象的停止，桿材價格一直處於低迷狀態。同時，廢鋼價格略有下降，因此價差正在改善。是嗎？

That's correct. To be more exact is, the selling price should have inflated at the end of the fourth quarter and the early part of the first quarter this year, because of scrap inflation. And that pricing inflation did not take place because of the dumping. But now that the scrap is normalized, that spread is improved, without a significant move in top line pricing.

沒錯。更確切地說，由於廢品價格上漲，今年第四季末和第一季初銷售價格應該已經上漲。而價格上漲並非因為傾銷而發生。但現在廢料已經正常化，價差有所改善，而頂線價格並未大幅波動。

Okay. And is there an expectation that with the dumped rod now being cleared, all that inventory gone, that rod prices may actually increase? So the spread would widen even further?

好的。是否有人預期，隨著傾銷的釣竿被清理，所有庫存都消失了，釣竿價格實際上可能會上漲？那麼利差會進一步擴大嗎？

Josh, probably not. It's somewhat dependent on what happens with scrap. And with scrap pulling back slightly, that there is not a real opportunity to increase selling price. So that correlation exists.

喬希，可能不是。這在某種程度上取決於廢料的情況。而隨著廢料價格略有回落，銷售價格並沒有真正上漲的機會。因此這種關聯是存在的。

Okay. Great. Thank you.

好的。偉大的。謝謝。

(Operator Instructions)

（操作員指令）

Our next question is follow up from Budd Bugatch of Raymond James.

我們的下一個問題是來自 Raymond James 的 Budd Bugatch 的後續問題。

Hi. Let me try to go at John's question a little bit differently, Karl. If -- I know you won't give us the numbers on the program versus continuing business and adjustable. But can you rank the importance, perhaps, between programs and continuous business? Just which is more important in that top 76%?

你好。卡爾，讓我試著從稍微不同的角度來回答約翰的問題。如果—我知道你不會給我們關於該計劃與持續經營和可調整業務相關的數字。但是，您能否對程序和持續業務之間的重要性進行排序？那麼這 76% 哪一個比較重要呢？

Every order is important. The historic volume, while it grew significantly, did not grow at that 75% rate. So it's heavy weighted to bifurcate the way that you asked the question. It's the rolling on of the new year-on-year programs. And those new programs were really fully in place by the first of July, so that we won't anniversary that until July of next year. But I still believe, because of the growth in the category, on both the new programs and an expectation of continued growth in the historic programs, that we'll see significant probably double-digit growth in the category after we anniversary those new programs.

每個訂單都很重要。歷史交易量雖然大幅成長，但成長速度並未達到 75%。因此，按照您提出的問題進行分叉會產生很大的影響。這是新的年度計劃的滾動進行。這些新計劃實際上在 7 月 1 日之前就已經全面到位，因此我們要到明年 7 月才會迎來週年紀念日。但我仍然相信，由於該類別的增長，無論是新項目還是歷史項目持續增長的預期，在我們紀念這些新項目之後，我們將看到該類別實現顯著的兩位數增長。

Okay. Just on a couple of other issues. The Chinese joint venture gave you some operational challenges. How are you -- how is that progressing now?

好的。還想談其他幾個問題。中國合資企業為你們帶來了一些營運挑戰。你好嗎——現在進展如何？

It continues to be a management challenge, in that that joint venture partner has too much control of that particular facility, and we continue to try to work through that.

這仍然是一個管理挑戰，因為合資夥伴對該特定設施的控製過多，我們會繼續努力解決這個問題。

Any idea of time frame as to when that might get resolved?

您知道什麼時候可以解決這個問題嗎？

I would have told you last quarter, next quarter. Everything moves slowly in China. We continue to be optimistic, but I can't put a date on it. We -- I want to tell you that it's -- we think it's soon, but we've thought it's soon for way too long.

我會上個季度或下個季度告訴你。在中國，一切進展緩慢。我們繼續保持樂觀，但我無法確定具體日期。我想告訴你們，我們認為這很快就會到來，但我們認為這很快就會到來的時間已經太長了。

Okay. And the French acquisition, the acquisition of the aerospace business in France. I think that had some issues that had to get resolved, as well. How are you doing with the management of that, and the progress there?

好的。還有法國的收購，收購法國的航空航太業務。我認為其中也存在一些需要解決的問題。您對此的管理做得如何？

Budd, very, very well. That we now have anniversaried the acquisition date, that things are progressing. Our quality systems are in place. The management teams are embracing some structural changes. We are very pleased with the progression of that business.

巴德，非常非常好。現在我們已經慶祝了收購週年，事情正在取得進展。我們的品質系統已經到位。管理團隊正在接受一些結構性變革。我們對業務的進展感到非常滿意。

Okay. And finally from me, CVP has been an issue. I thought it was improving; decreasing sales 9% brought me up a little bit. Am I wrong in my view? Or -- and how -- is it profitable? And what does it say about it?

好的。最後，對我來說，CVP 一直是個問題。我以為它正在改善；銷售額下降 9% 讓我稍微振作起來。我的觀點是錯的嗎？或者——以及如何——它是盈利的？對此它是怎麼說的呢？

This is Jack. It is improving, relatively. Some of the -- a majority of that sales decline represents a shift in the business model. You may recall that we talked about Ford moving their production from Ohio to Kansas City. For some period of time, they didn't have vehicles available. And in the Kansas City model, we are not an exclusive Ford-directed up-fitter with a free program that goes to the dealer.

這是傑克。相對而言，正在改善。大部分銷售額的下降代表商業模式的轉變。您可能還記得，我們​​談論過福特將其生產從俄亥俄州遷至堪薩斯城。有一段時間，他們沒有可用的車輛。在堪薩斯城模式中，我們並不是福特獨家授權的改裝商，也不會提供經銷商免費的改裝方案。

So those dynamics cause some of the dealers to order vans without an interior, and then use a local distributor, perhaps. And given that it's non-exclusive, we had expected and budgeted for Kansas City to share the volume of the Ford transit with two other providers that are there in Kansas City. So we have been driving that business to adjust to an expected 20% to 25% decrease in sales to be profitable at that level. This year, we will be profitable, but it will be low single digits in that group. And then next year, we expect that to normalize and move up.

因此，這些動態導致一些經銷商訂購沒有內裝的貨車，然後或許會使用當地經銷商。鑑於它是非獨家的，我們預計併預算堪薩斯城將與堪薩斯城的另外兩家供應商共享福特全順的銷售。因此，我們一直在推動該業務適應預計的 20% 至 25% 的銷售額下降，以實現盈利。今年我們將實現盈利，但該集團的盈利水平將處於個位數以下。我們預計明年這一數字將正常化並上升。

All right. Thank you, Jack. Thank you.

好的。謝謝你，傑克。謝謝。

There are no further questions at this time. And I would like to turn the floor back to management for closing comments.

目前沒有其他問題。最後，我想將發言權交還給管理階層，請他們發表最後評論。

We'll just say, thank you for your participation, and we'll talk to you again in January.

我們只想說，感謝您的參與，我們將在一月份再次與您交談。

This concludes today's teleconference. You may disconnect your lines at this time, and thank you for your participation.

今天的電話會議到此結束。此時您可以斷開您的線路，感謝您的參與。