禮恩派 (LEG) 2023 Q4 法說會逐字稿

Greetings, and welcome to the Leggett & Platt Fourth Quarter and Full Year 2023 Webcast and Earnings Conference Call.

您好，歡迎參加 Leggett & Platt 2023 年第四季和全年網路廣播與財報電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Cassie Branscum, Vice President of Investor Relations for Leggett & Platt. Please go ahead.

現在我很高興向您介紹主持人，Cassie Branscum，Leggett & Platt 投資者關係副總裁。請繼續。

Good morning, and welcome to Leggett & Platt's Fourth Quarter and Full Year 2023 Earnings Call. With me on the call today are Mitch Dolloff, President and CEO; Ben Burns, Executive Vice President and CFO; Steve Henderson, Executive Vice President and President of the Specialized Products and Furniture, Flooring & Textile Products segment; Tyson Hagale, Executive Vice President and President of the Bedding Products segment; Susan McCoy, Director of IR Special Projects; and Kolina Talbert, Manager of Investor Relations.

早上好，歡迎參加 Leggett & Platt 的 2023 年第四季和全年財報電話會議。今天與我一起參加電話會議的是總裁兼執行長米奇‧多洛夫 (Mitch Dolloff)； Ben Burns，執行副總裁兼財務長； Steve Henderson，執行副總裁兼專業產品及家具、地板及紡織產品部門總裁； Tyson Hagale，執行副總裁兼寢具部門總裁； Susan McCoy，IR 特別項目總監；和投資者關係經理 Kolina Talbert。

The agenda for our call this morning is as follows: Mitch will start with a summary of the main points we made in yesterday's press release and discuss operating results and demand trends. Ben will cover financial details and address our outlook for 2024, and the group will answer any questions you have. This conference call is being recorded for Leggett & Platt and is copyrighted material. This call may not be transcribed, recorded or broadcast without our express permission. A replay will be available on the Investor Relations section of our website. We posted to the IR section of our website, yesterday's press release and a set of slides that contain summary financial information along with segment details. Those documents supplement the information we discuss on this call, including non-GAAP reconciliations.

我們今天早上的電話會議議程如下：米奇將首先總結我們在昨天的新聞稿中提出的要點，並討論經營業績和需求趨勢。 Ben 將介紹財務細節並闡述我們對 2024 年的展望，該小組將回答您的任何問題。本次電話會議由禮恩派 (Leggett & Platt) 錄製，屬於受版權保護的資料。未經我們明確許可，不得轉錄、錄製或廣播本次通話。我們網站的投資者關係部分將提供重播。我們在網站的投資者關係部分發布了昨天的新聞稿和一組幻燈片，其中包含摘要財務資訊以及部門詳細資訊。這些文件補充了我們在本次電話會議中討論的信息，包括非公認會計準則調節表。

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 sections in our most recent 10-K and subsequent 10-Q entitled Risk Factors and Forward-Looking Statements.

今天有關未來預期、事件、目標、策略、趨勢或結果的言論構成前瞻性陳述。由於許多風險和不確定性，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。有關這些風險因素和其他資訊的摘要，請參閱昨天的新聞稿以及我們最近的 10-K 和後續 10-Q 中題為“風險因素和前瞻性陳述”的部分。

I'll now turn the call over to Mitch.

我現在將電話轉給米奇。

Good morning, and thank you for participating in our call. First, I would like to recognize Susan McCoy on what will be her final earnings call. She's retired at the end of March after 38 years with the company, including 22 years in Investor Relations. Susan has made enormous contributions to Leggett, including developing an outstanding IR function that has benefited both Leggett and the investment community over the past 2 decades. Susan, thank you so much for your service and congratulations on your retirement.

早安，感謝您參與我們的電話會議。首先，我想在蘇珊麥考伊的最後一次財報電話會議上向她表示認可。她在公司工作了 38 年，其中在投資者關係領域工作了 22 年，她於 3 月底退休。 Susan 為 Leggett 做出了巨大貢獻，包括開發了出色的 IR 功能，在過去 20 年裡使 Leggett 和投資界都受益。蘇珊，非常感謝你的服務並祝賀你退休。

In what has been a long-planned succession, Cassie Branscum stepped into the lead role as Vice President of Investor Relations, effective the beginning of 2024. Cassie joined the IR team in 2018 after serving in various roles across the company since 2005. She has tremendous financial skills and deep legged knowledge that will continue to serve us well as she leads the IR function going forward.

在計劃已久的繼任計劃中，Cassie Branscum 出任投資者關係副總裁一職，自 2024 年初起生效。Cassie 自 2005 年以來在公司擔任過各種職務，並於 2018 年加入 IR 團隊。出色的財務技能和深厚的知識將在她領導IR 職能的過程中繼續為我們服務。

2023 was another challenging year, particularly within our residential end markets. Our employees, once again, persevered to accomplish some notable achievements, including preparing a restructuring plan for our Bedding Products and Furniture, Flooring & Textile Products segment. These efforts will drive improved operating efficiency and profitability while maintaining high-quality products and services for our customers, driving strong cash flow with a continued focus on working capital management, and advancing our sustainability data collection efforts to establish baseline metrics and goals that we plan to share in our 2024 report. Thank you for your continued dedication to each other in Leggett & Platt. We have made some difficult but necessary decisions to support the company's long-term success. I sincerely appreciate your ongoing support, and thank you for your efforts each and every day.

2023 年又是充滿挑戰的一年，尤其是在我們的住宅終端市場。我們的員工再次堅持不懈地取得了一些顯著的成就，包括為我們的床上用品以及家具、地板和紡織品部門制定重組計劃。這些努力將提高營運效率和盈利能力，同時為客戶提供高品質的產品和服務，透過持續關注營運資本管理來推動強勁的現金流，並推進我們的可持續發展數據收集工作，以建立我們計劃的基準指標和目標分享我們 2024 年的報告。感謝您在禮恩派 (Leggett & Platt) 持續不斷的相互奉獻。我們做出了一些困難但必要的決定來支持公司的長期成功。我衷心感謝您一直以來的支持，並感謝您每天的努力。

Before we move on to our fourth quarter and full year 2023 financial results, I would like to walk through the restructuring plan we announced on January 16 that primarily impacts our Bedding Products segment. We're taking actions to create a more focused, agile organization with a portfolio of products that are most in demand and an operating footprint aligned with the markets we serve. These actions build upon work already underway to better position our Bedding business for the future.

在我們討論 2023 年第四季和全年財務業績之前，我想先介紹一下我們於 1 月 16 日宣布的重組計劃，該計劃主要影響我們的床上用品部門。我們正在採取行動，創建一個更專注、敏捷的組織，擁有最受歡迎的產品組合以及與我們所服務的市場一致的營運足跡。這些行動建立在已經開展的工作基礎上，以便更好地定位我們的床上用品業務的未來。

Optimizing the Bedding manufacturing and distribution footprint will drive most of the onetime cost and future EBIT benefits from the plan. The majority of Bedding actions will be within our U.S. Spring and specialty foam businesses. We will be winding down operations at our smaller U.S. spring distribution locations over the next few months and expect to shift innerspring production to 4 higher output facilities over the course of 2024.

優化床上用品製造和分銷足跡將推動該計劃的大部分一次性成本和未來息稅前利潤收益。大部分床上用品業務將在我們的美國彈簧和特殊泡棉業務範圍內進行。我們將在未來幾個月內逐步關閉美國規模較小的彈簧分銷地點的運營，並預計在 2024 年將內置彈簧生產轉移至 4 個產量更高的工廠。

Within Specialty Foam, we will be consolidating several manufacturing operations and driving more product synergies across Specialty Foam and innersprings, including private label and OEM hybrid at over approximately the next 18 months. Fewer but higher output manufacturing facilities, combined with an improved distribution network will allow us to manufacture and distribute our products more efficiently and serve our customers more effectively.

在特種泡沫領域，我們將在大約未來 18 個月內整合多個製造業務，並推動特種泡沫和內置彈簧之間的更多產品協同效應，包括自有品牌和 OEM 混合產品。更少但產量更高的製造設施，加上改進的分銷網絡，將使我們能夠更有效地製造和分銷我們的產品，並更有效地為我們的客戶提供服務。

While we are reducing capacity in certain product categories to align with consumer preferences that have shifted over time, we are maintaining sufficient capacity to service our customers with the products they deserve most as market demand returns to more normalized levels in the future. Sales attrition from these initiatives is primarily due to discontinuing production of certain commodity bedding products in certain geographies.

雖然我們正在減少某些產品類別的產能，以適應隨著時間的推移而變化的消費者偏好，但隨著市場需求在未來恢復到更正常化的水平，我們仍保持足夠的產能，為客戶提供他們最應得的產品。這些措施造成的銷售流失主要是因為某些地區停止生產某些商品寢具。

We are also consolidating a small number of production facilities in our home furniture and flooring products businesses within the Furniture, Flooring & Textile products segment. The home furniture consolidation activity is underway and is expected to be completed in the first half of 2024. The flooring products efforts are also underway but will likely extend into 2025 as multiple product lines are being shifted among locations. These actions are being taken to better align capacity with regional demand and drive operating efficiencies.

我們還在家具、地板和紡織產品領域整合了家居和地板產品業務中的少量生產設施。家具整合活動正在進行中，預計將於 2024 年上半年完成。地板產品的努力也在進行中，但由於多個產品線正在不同地點轉移，因此可能會延續到 2025 年。採取這些行動是為了更好地調整產能與區域需求並提高營運效率。

In connection with the restructuring plan, we stepped away from our total shareholder return goal and financial targets including revenue growth, EBIT margin and dividend payout ratio. We will issue revised financial targets in the future where our restructuring initiatives are implemented, and we have better visibility of further opportunities that could impact our long-term performance.

在重組計畫中，我們放棄了股東總回報目標和財務目標，包括收入成長、息稅前利潤率和股息支付率。我們將在未來實施重組計劃時發布修訂後的財務目標，並且我們可以更好地了解可能影響我們長期業績的進一步機會。

Now moving on to fourth quarter and full year 2023 results. Fourth quarter sales were $1.1 billion, down 7% versus the fourth quarter of 2022. Continued weak demand in residential end markets was partially offset by demand strength in our Automotive, Aerospace and Hydraulic Cylinders businesses. Fourth quarter EBIT was a loss of $367 million, resulting from a $444 million noncash intangible asset impairment charge. This impairment was associated with the ECS and Kayfoam acquisitions and primarily related to customer relationships, technology and trademark intangible assets.

現在轉向 2023 年第四季和全年業績。第四季銷售額為 11 億美元，較 2022 年第四季下降 7%。住宅終端市場持續疲軟的需求被我們的汽車、航空航太和液壓缸業務的需求強勁所部分抵消。第四季息稅前利潤虧損 3.67 億美元，歸因於 4.44 億美元的非現金無形資產減損費用。此減損與 ECS 和 Kayfoam 收購有關，主要與客戶關係、技術和商標無形資產有關。

Prolonged weak demand and changing market dynamics have created disruption and financial instability for some of our customers. As such, recent efforts by certain customers to improve their financial position are expected to reduce our future sales and earnings. This triggered an evaluation of intangible assets and resulted in the impairment charge in the fourth quarter of 2023.

長期疲軟的需求和不斷變化的市場動態對我們的一些客戶造成了乾擾和財務不穩定。因此，某些客戶最近為改善財務狀況所做的努力預計將減少我們未來的銷售額和收益。這引發了對無形資產的評估，並導致 2023 年第四季提列減損費用。

Adjusted EBIT was $66 million in the quarter, down $25 million versus fourth quarter 2022, primarily due to lower metal margins in our Steel Rod business and lower volume in our residential end markets. Fourth quarter earnings per share was a loss of $2.18 due to the items discussed in yesterday's press release. Excluding these items, adjusted fourth quarter EPS was $0.26, a 33% decrease from fourth quarter 2022 EPS of $0.39.

本季調整後息稅前利潤為 6,600 萬美元，比 2022 年第四季減少 2,500 萬美元，這主要是由於我們的鋼棒業務的金屬利潤率下降以及住宅終端市場的銷量下降。由於昨天新聞稿中討論的項目，第四季度每股收益虧損 2.18 美元。排除這些項目，調整後第四季每股收益為 0.26 美元，比 2022 年第四季每股收益 0.39 美元下降 33%。

For the full year, 2023 sales decreased 8% to $4.7 billion, primarily from weak residential end market demand and raw material-related selling price decreases partially offset by acquisitions and demand strength in industrial end markets. EBIT decreased $575 million, primarily from the $444 million intangible asset impairment.

2023 年全年銷售額下降 8%，至 47 億美元，主要是由於住宅終端市場需求疲軟以及與原材料相關的售價下降，但工業終端市場的收購和需求強勁部分抵消了這一下降。息稅前利潤減少了 5.75 億美元，主要來自 4.44 億美元的無形資產減損。

Adjusted EBIT decreased $151 million to $334 million, primarily for metal margin compression and lower volume in our residential end markets. Full year EPS was a loss of $1 and adjusted EPS was $1.39, a 39% decrease from 2022, EPS of $2.27. Cash flow from operations was $497 million, a $56 million increase versus 2022.

調整後息稅前利潤減少 1.51 億美元至 3.34 億美元，主要是金屬利潤壓縮和住宅終端市場銷售下降。全年每股收益虧損 1 美元，調整後每股收益為 1.39 美元，較 2022 年每股收益 2.27 美元下降 39%。營運現金流為 4.97 億美元，比 2022 年增加 5,600 萬美元。

Moving on to the segments. The U.S. Bedding market continues to be in a deep recession with mattress consumption at levels comparable to 2016. We believe 2023 U.S. mattress consumption was down high single digits versus 2022 and expect mattress demand in 2024 to be flat to down slightly versus last year. Imported finished mattresses are putting additional pressure on U.S. production in this low demand environment. Sales in our Bedding Products segment were down 14% versus fourth quarter of 2022 and decreased 17% for the full year.

繼續進行細分。美國寢具市場持續陷入深度衰退，床墊消費水準與2016 年相當。我們認為2023 年美國床墊消費量將比2022 年大幅下降個位數，並預計2024 年床墊需求將與去年持平或略有下降。在這種低需求環境下，進口成品床墊給美國生產帶來了額外壓力。我們的床上用品部門的銷售額與 2022 年第四季相比下降了 14%，全年下降了 17%。

While volume in U.S. Spring was down 12% in 2023, Comfort Core performance was consistent with overall mattress market trends. We expect 2024 volume in U.S. Spring to be down modestly, primarily due to anticipated sales attrition from the restructuring plan and further declines in lower-value Open Coil innersprings and wire grids. These declines are expected to be partially offset by growth in Comfort Core innerspring units, including growth in our new combination pocket and eco based products.

儘管 2023 年美國春季銷售下降了 12%，但 Comfort Core 的表現與整體床墊市場趨勢一致。我們預計 2024 年美國春季銷量將小幅下降，這主要是由於重組計劃的預期銷售損耗以及價值較低的開式線圈內置彈簧和線柵的進一步下降。這些下降預計將被 Comfort Core 內置彈簧裝置的成長所部分抵消，包括我們新的組合口袋和生態產品的成長。

Metal margin declined slightly more than expected in 2023, primarily due to mix. We anticipate further modest declines in 2024. To stay competitive with global steel cost, both contract and noncontract innerspring pricing was adjusted in the back half of 2023. Pricing impacts began in the fourth quarter but will be fully realized in 2024. Specialty Foam volume in 2024 is expected to be down high single to low double digits, primarily as a result of customer actions that led to the impaired charge we discussed earlier. These impacts are anticipated to be realized as we move through the course of the year. We expect 2024 adjusted segment EBIT to be modestly lower year-over-year from lower volume pricing responses related to global steel cost differentials and modest metal margin compression, partially offset by approximately $45 million of lower amortization from the intangible asset impairment taken in the fourth quarter of 2023.

2023 年金屬利潤率下降幅度略高於預期，主要是混合因素。我們預計2024 年將進一步小幅下降。為了保持與全球鋼鐵成本的競爭力，合約和非合約內置彈簧定價均在2023 年下半年進行了調整。定價影響從第四季度開始，但將在2024 年完全實現。特種泡沫產量預計 2024 年將出現高個位數到低兩位數的下降，這主要是由於客戶行為導致我們之前討論的費用受損。這些影響預計將在今年內實現。我們預計2024 年調整後的分部息稅前利潤將同比小幅下降，原因是與全球鋼鐵成本差異相關的批量定價反應較低以及金屬利潤率適度壓縮，第四季度無形資產減值攤銷額減少約4,500 萬美元，部分抵銷了這一影響。2023 年第四季。

Despite current challenging market dynamics, the actions we are taking aim to position our Bedding business for long-term success as we improve operating efficiencies and continue to drive valuable product solutions for our customers. Sales in our Specialized Products segment increased 5% versus fourth quarter of 2022 and were up 14% for the full year. In our automotive business, the UAW strike impact on fourth quarter sales was approximately $5 million, and we do not expect any follow-on impacts from the strike in 2024.

儘管當前市場動態充滿挑戰，但我們正在採取的行動旨在提高營運效率並繼續為客戶提供有價值的產品解決方案，從而使我們的床上用品業務取得長期成功。與 2022 年第四季相比，我們的專業產品部門的銷售額成長了 5%，全年成長了 14%。在我們的汽車業務中，UAW 罷工對第四季度銷售額的影響約為 500 萬美元，我們預計 2024 年罷工不會產生任何後續影響。

We continue to see volatility in certain regions due to geopolitical and supply chain impacts. We anticipate growth in 2024 and expect to outperform global automotive production, primarily due to new programs-initiated production throughout the year. We expect continued strong demand in our Aerospace business in 2024 with commercial aerospace backlogs at historic highs. 2024 industry production is anticipated to be modestly above pre-pandemic levels.

由於地緣政治和供應鏈的影響，我們繼續看到某些地區出現波動。我們預計 2024 年將實現成長，並預計將超越全球汽車產量，這主要是由於全年啟動的新計畫生產。我們預計 2024 年我們的航空航太業務需求將持續強勁，商用航空航太積壓訂單將達到歷史高點。預計 2024 年工業產量將略高於大流行前的水平。

In Hydraulic Cylinders, U.S. demand continues to be strong with backlog driving growth through at least the first half of 2024. Domestic growth is expected to be mostly offset by softening demand in Europe. In 2024, we expect segment EBIT to be flat with 2023 as volume growth is anticipated to be offset by less benefit from a reduction to a contingent purchase price liability associated with the prior year acquisition. Sales in our Furniture, Flooring & Textile Products segment were down 6% versus fourth quarter of 2022, down 11% for the full year.

在液壓缸方面，美國需求持續強勁，至少到 2024 年上半年，積壓訂單將推動成長。國內成長預計將大部分被歐洲需求疲軟所抵消。 2024 年，我們預計該部門的息稅前利潤將與 2023 年持平，因為銷售成長預計將被上一年收購相關的或有購買價格負債減少帶來的收益減少所抵銷。與 2022 年第四季相比，我們的家具、地板和紡織品部門的銷售額下降了 6%，全年下降了 11%。

Demand in Home Furniture continues to be soft. We expect 2024 to be similar to last year with improvements in low end market demand, offset by continued weakness in mid- to high-end market demand. Work Furniture demand remains low in both contract and residential markets. We expect 2024 demand be in line with 2023.

家用家具的需求持續疲軟。我們預計 2024 年將與去年類似，低端市場需求有所改善，但被中高端市場需求持續疲軟所抵消。合約和住宅市場的工作家具需求仍然很低。我們預計 2024 年的需求將與 2023 年保持一致。

In Flooring products, we are anticipating another year of lower residential demand due to low existing home sales and renovation activity. Hospitality demand continues to slowly improve but remains well below pre-pandemic levels. After weaker-than-expected demand in 2023, we anticipate Geo Components demand to improve through the course of the year, infrastructure and commercial spending in civil construction markets, while retail sales are expected to be flat.

在地板產品方面，由於現房銷售和裝修活動較低，我們預計住宅需求將再次下降。飯店需求持續緩慢改善，但仍遠低於疫情前的水平。在 2023 年需求弱於預期之後，我們預計土工零件需求將在年內有所改善，民用建築市場的基礎設施和商業支出也將有所改善，而零售額預計將持平。

In 2024, we expect adjusted segment EBIT to be down modestly year-over-year from lower volume and moderate pricing pressure from deflation. The largest headwind to earnings continues to be low volume levels in our residential end markets. In the near term, we are focused on improving operating efficiency across our businesses, driving cash flow and executing our restructuring plan.

到 2024 年，我們預計調整後的細分市場息稅前利潤將因銷售下降和通貨緊縮帶來的適度定價壓力而同比小幅下降。獲利的最大阻力仍然是住宅終端市場的低銷量。短期內，我們的重點是提高整個業務的營運效率、推動現金流量和執行重組計劃。

Additionally, we believe the longer-term benefits from our refocused bedding strategy will advance key product growth, improve profitability and drive enhanced value for our customers and shareholders.

此外，我們相信，我們重新調整的床上用品策略將帶來長期利益，將促進關鍵產品的成長，提高獲利能力，並為我們的客戶和股東帶來更高的價值。

I'll now turn the call over to Ben.

我現在將電話轉給本。

Thank you, Mitch, and good morning, everyone. In 2023, we generated cash from operations of $497 million, $56 million higher than the $441 million we generated in 2022. This increase reflects a continued focus on working capital management, partially offset by lower earnings. We ended the year with adjusted working capital as a percentage of annualized sales of 13.9%, a notable improvement from 2022.

謝謝你，米奇，大家早安。 2023 年，我們從營運中產生了 4.97 億美元的現金，比 2022 年的 4.41 億美元增加了 5,600 萬美元。這一增長反映出我們對營運資本管理的持續關注，但部分被收入下降所抵消。截至年底，我們的調整後營運資本佔年化銷售額的百分比為 13.9%，較 2022 年顯著改善。

Consistent with our near-term priorities of managing cash and reducing debt, we did not complete any acquisitions and had minimal share repurchases in 2023. Major uses of cash in 2023 were $114 million of capital expenditures, reflecting a balance of investing for the future while controlling our spending $239 million for dividend payments, extending our record of consecutive annual dividend increases to 52 years and $107 million to reduce debt.

與我們管理現金和減少債務的近期優先事項一致，我們沒有完成任何收購，並且在2023 年進行了最低限度的股票回購。2023 年現金的主要用途是1.14 億美元的資本支出，反映了未來投資的平衡，同時我們控制了 2.39 億美元的股息支付支出，將我們連續年度股息增加的記錄延長至 52 年，並減少了 1.07 億美元的債務。

We ended the year with total debt of $2 billion, including $186 million of commercial paper outstanding. Net debt to trailing 12-month adjusted EBITDA was 3.16x at year-end, in line with the third quarter and consistent with our expectations. We monitor our debt leverage and liquidity closely. As a reminder, our covenant calculation is more favorable than our publicly reported leverage ratio and we expect that favorable difference to expand in 2024.

截至年底，我們的債務總額為 20 億美元，其中未償商業票據為 1.86 億美元。截至年底，淨債務與過去 12 個月調整後 EBITDA 比率為 3.16 倍，與第三季一致，也符合我們的預期。我們密切監控我們的債務槓桿和流動性。提醒一下，我們的契約計算結果比我們公開報告的槓桿率更有利，我們預計這種有利差異將在 2024 年擴大。

Total liquidity was $697 million at year-end comprised of $365 million of cash on hand and $332 million in capacity remaining under our revolving credit facility. As we anticipate weak residential end market demand again this year, we are focused on maintaining our investment-grade credit rating and managing debt leverage while balancing continued investment in our business for future growth and our dividend track record.

截至年底，流動性總額為 6.97 億美元，其中包括 3.65 億美元的手頭現金和 3.32 億美元的循環信貸額度剩餘能力。由於我們預計今年住宅終端市場需求將再次疲軟，因此我們的重點是維持投資等級信用評級和管理債務槓桿，同時平衡對業務的持續投資以實現未來成長和股息記錄。

We continue to focus on managing working capital and identifying other opportunities to generate cash. In 2024, we expect pretax proceeds of $20 million to $30 million from real estate sales, consisting of idle real estate, we are actively marketing and, to a lesser extent, real estate that we will be exiting as a result of our restructuring initiatives. We expect to predominantly use our commercial paper program to repay $300 million of 3.8%, 10-year notes maturing in November.

我們繼續專注於管理營運資金並尋找其他產生現金的機會。到 2024 年，我們預計房地產銷售的稅前收益為 2000 萬至 3000 萬美元，其中包括我們正在積極營銷的閒置房地產，以及在較小程度上我們將因重組舉措而退出的房地產。我們預計將主要使用我們的商業票據計畫來償還 11 月到期的 3 億美元、利率為 3.8%、10 年期票據。

Now moving to the 2024 full year guidance. 2024 sales are expected to be $4.35 billion to $4.65 billion, were down 2% to 8% versus 2023, reflecting continued weak demand in our residential end markets, partially offset by growth in automotive and our industrial end markets. Volume is expected to be down low to mid-single digits with volume at the midpoint, down high single digits in Bedding Products, up low single digits in Specialized Products and down low single digits in Furniture, Flooring & Textile products.

現在轉向 2024 年全年指導。 2024 年銷售額預計為 43.5 億至 46.5 億美元，比 2023 年下降 2% 至 8%，反映出住宅終端市場需求持續疲軟，但部分被汽車和工業終端市場的成長所抵消。預計銷售量將下降到中個位數，其中床上用品銷售將下降高個位數，特種產品銷售量將下降低個位數，家具、地板和紡織品產品銷售量將降低個位數。

Deflation and currency combined is expected to reduce sales low single digits. 2024 earnings per shares expected to be in the range of $0.95 to $1.25 including approximately $0.20 to $0.25 per share of negative impact from restructuring costs and $0.10 to $0.15 per share gain from the sale of real estate.

通貨緊縮和貨幣貶值相結合，預計銷售額將減少到低個位數。 2024 年每股收益預計在 0.95 美元至 1.25 美元之間，其中包括重組成本帶來的每股約 0.20 美元至 0.25 美元的負面影響以及房地產出售帶來的每股 0.10 美元至 0.15 美元的收益。

Full year adjusted earnings per share are expected to be $1.05 to $1.35, primarily reflecting lower volume, pricing responses related to global steel cost differentials, modest metal margin compression and several expense items that were abnormally low in 2023, and are expected to normalize in 2024, including bad debt expense, a reduction to a contingent purchase price liability associated with the prior year acquisition and incentive compensation. These decreases are partially offset by lower amortization from the 2023 intangible asset impairment.

全年調整後每股盈餘預計為1.05 至1.35 美元，主要反映銷售下降、與全球鋼鐵成本差異相關的定價反應、金屬利潤率適度壓縮以及2023 年異常低的若干費用項目，預計將在2024 年正常化，包括壞帳費用、與上一年收購相關的或有購買價格負債的減少和激勵補償。這些減少被 2023 年無形資產減損攤銷減少部分抵銷。

Based upon this guidance framework, our 2024 full year adjusted EBIT margin range is expected to be 6.4% to 7.2%. The EPS guidance assumes a full year effective tax rate of 25% versus an adjusted rate of 24% in 2023. Depreciation and amortization of approximately $135 million, which is approximately $45 million lower as a result of the impairment taken last year. Net interest expense of approximately $85 million and fully diluted shares of $138 million. Cash from operations is expected to be $325 million to $375 million in 2024 as we expect fewer opportunities for working capital improvement year-over-year. We will continue to closely manage all elements of working capital.

根據這個指導框架，我們 2024 年全年調整後的息稅前利潤率範圍預計為 6.4% 至 7.2%。 EPS 指引假設全年有效稅率為 25%，而 2023 年調整後稅率為 24%。折舊和攤提約為 1.35 億美元，由於去年進行的減值，折舊和攤提減少了約 4,500 萬美元。淨利息支出約為 8,500 萬美元，完全稀釋後的股份為 1.38 億美元。由於我們預期營運資本改善的機會逐年減少，因此 2024 年營運現金預計為 3.25 億至 3.75 億美元。我們將繼續密切管理營運資金的所有要素。

For the full year 2024, we assumed capital expenditures of $100 million to $120 million, dividends of approximately $245 million, indicating $1.84 annual dividend in 2024 versus $1.82 in 2023 and minimal spending for acquisitions and share repurchases as we focus on managing cash. In closing, I would like to thank our employees. Your continued efforts to drive value for our customers and shareholders while supporting and keeping each other safe is very much appreciated.

對於2024 年全年，我們假設資本支出為1 億至1.2 億美元，股息約為2.45 億美元，這表明2024 年的年度股息為1.84 美元，而2023 年為1.82 美元，並且由於我們專注於管理現金，因此收購和股票回購的支出最少。最後，我要感謝我們的員工。非常感謝您持續努力為我們的客戶和股東創造價值，同時支持和確保彼此的安全。

With those comments, I'll turn the call back over to Cassie.

有了這些評論，我會將電話轉回給 Cassie。

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

謝謝你，本。接線員，我們準備開始問答。

(Operator Instructions)

（操作員說明）

Our first question comes from the line of Susan Maklari with Goldman Sachs.

我們的第一個問題來自高盛的 Susan Maklari。

I first want to congratulate Susan. It's been great working with you all these years, and you are going to be very missed. So congrats and best of luck in your retirement.

我首先要祝賀蘇珊。這些年來與您一起工作真是太好了，我們會非常想念您。所以恭喜你，祝你退休後好運。

Thanks, Susan. I appreciate that and we'll definitely stay in touch.

謝謝，蘇珊。我很感激，我們一定會保持聯絡。

Yes. So moving on to my questions. I've got a couple of them related to the restructuring that you've announced. And maybe to start with, can you talk a bit about how you think of the long-term dynamics of the Bedding industry? With all the different moves we've seen in the last 3 or 4 years or so, how did you determine the level of demand that you need to be sized to? How are those coming together? And what are the sort of nuances of what you keep versus what you restructure out of the business? And how do you think about the go forward, I guess, of that operation?

是的。那麼繼續我的問題。我收到了一些與您宣布的重組相關的資訊。也許首先，您能否談談您如何看待床上用品產業的長期動態？在過去 3、4 年左右的時間裡，我們看到了各種不同的舉措，您是如何確定需要調整規模的需求水準的？這些人是如何走在一起的？您保留的內容與從業務中重組的內容有何細微差別？我想，您如何看待該行動的進展？

Thanks for the question. I think the big picture for me is the restructuring is more than just thinking about our capacity. But Tyson, let me turn it over to you to share your thoughts.

謝謝你的提問。我認為對我來說，大局是重組不僅僅是考慮我們的能力。但是泰森，讓我把它交給你來分享你的想法。

Sure, sure thing. I'll start by saying, and I know this is pretty obvious but these are really difficult decisions, and we didn't take them lightly. And part of it is what Mitch said, too, it goes beyond just capacity. I mean really if you think about how our business has been changing over several years, we've been changing our product lineup with the acquisition of Specialty Foam, how we've been pivoting to more semifinished products, incorporating foam into our innerspring products as well, and a continued long-term shift on Open Coil to Comfort Core.

當然，肯定的事情。首先我要說的是，我知道這是很明顯的，但這些都是非常困難的決定，我們並沒有掉以輕心。米奇也說過，這不只是能力的一部分。我的意思是，如果您考慮我們的業務多年來發生的變化，我們一直在通過收購特種泡沫來改變我們的產品陣容，我們如何轉向更多的半成品，將泡沫融入我們的內置彈簧產品中以及從開放線圈到舒適核心的持續長期轉變。

So we've seen our product mix and what we're offering our customers change quite a lot over the last several years. So as we thought about the manufacturing part of the restructuring plan, also over the last several years, even during the pandemic. We've invested heavily in Comfort Core productive capacity and really efficient capacity. We've done the same thing at ECS after acquisition. We've been making investments there as well. So as we look at where the market is headed and what our customers really want and their products, we also still had some longer-term legacy capacity still in place from Open Coil in our innerspring business. So we've added the comfort core capacity and hadn't necessarily taken off as much of the (inaudible) capacity as we needed to.

因此，我們看到我們的產品組合以及我們為客戶提供的產品在過去幾年中發生了很大變化。因此，當我們考慮重組計劃的製造部分時，也是在過去幾年中，甚至在大流行期間。我們在 Comfort Core 生產能力和真正高效的能力方面投入了大量資金。收購 ECS 後我們也做了同樣的事情。我們也一直在那裡進行投資。因此，當我們著眼於市場的發展方向以及我們的客戶真正想要什麼及其產品時，我們的內置彈簧業務中仍然保留著一些來自開式線圈的長期遺留產能。因此，我們增加了舒適核心容量，但不一定取消我們需要的（聽不清楚）容量。

So looking at that, we're not looking at today's market environment. We're at a really, really low point for U.S. mattress manufacturing. So we're not looking at today as the long-term needs. We really are looking at what we think to be the long-term trajectory of the overall market and more of a move towards Comfort Core and semifinished products.

因此，我們關注的並不是當今的市場環境。美國床墊製造正處於一個非常非常低的時期。因此，我們不會將今天視為長期需求。我們確實正在關注我們認為的整個市場的長期軌跡，更多的是向舒適核心和半成品的發展。

So as we looked at just our overall footprint and our manufacturing capacity with what we've put into place, we saw an opportunity to go through the consolidations and still maintain our capacity and ability to flex up to whatever the market needs might be with our customers with just a smaller footprint, higher output facilities and then also adjusting our distribution network to have a fewer number of larger regional sites that will support our customers in a better way.

因此，當我們審視我們的整體足跡和我們已投入的製造能力時，我們看到了一個機會，可以進行整合，同時仍然保持我們的產能和能力，以適應市場的任何需求。客戶只需佔地面積更小、產量更高的設施，然後調整我們的分銷網絡，以擁有更少數量的大型區域站點，從而以更好的方式為我們的客戶提供支援。

So it's a long-winded answer but really taking a lot of things into account and not necessarily walking away from active capacity but more to where we think the market is headed.

因此，這是一個冗長的答案，但確實考慮了許多因素，並不一定要放棄活躍產能，而是更專注於我們認為市場的發展方向。

Okay. That's great color, Tyson. And then I know that with the release a couple of weeks ago, you walked away from the long-term margin guide. But I guess, as you think about coming through this restructuring and being on the other side of it. How do we think about what that could mean for the margins, both within Bedding and then within Leggett just as a total, relative to where we are today, anything that you can sort of give us in terms of a general path there?

好的。這顏色真棒，泰森。然後我知道，隨著幾週前的發布，您放棄了長期保證金指南。但我想，當你考慮完成這次重組並站在它的另一邊。我們如何看待這對 Bedding 內部和 Leggett 內部的利潤意味著什麼？作為一個整體，相對於我們今天的情況，您可以為我們提供一些總體路徑嗎？

Yes, I'll take that one, Susan. So great question. Yes, I think the restructuring is certainly important for us. I think it resets us for sort of the more forward-looking market environment. And I don't mean that from a capacity standpoint, as Tyson said, we're really looking at sort of the normalized growth that we would achieve in bedding over the longer term.

是的，我想要那個，蘇珊。很好的問題。是的，我認為重組對我們來說當然很重要。我認為它使我們重新適應了更具前瞻性的市場環境。我的意思並不是說，從產能的角度來看，正如泰森所說，我們真正關注的是床上用品長期實現的正常化成長。

But beyond that, I think we have other actions that we can take and that we are taking. The biggest one, of course, is volume. So in markets -- our residential end markets start to come back with volume, that has a huge, huge impact on the EBIT margins for the company overall. But beyond the restructuring, I think we have opportunities to continue to optimize our operating efficiency making sure that we are being as effective as we can and that we are producing products and even in certain lines that are value added to us.

但除此之外，我認為我們還有其他可以採取和正在採取的行動。當然，最大的一個是數量。因此，在市場上，我們的住宅終端市場開始出現銷售回升，這對公司整體的息稅前利潤率產生了巨大的影響。但除了重組之外，我認為我們還有機會繼續優化我們的營運效率，確保我們盡可能高效，並確保我們正在生產產品，甚至在某些為我們帶來增值的產品線上生產。

Continuing to recover cost impacts outside of just raw materials and whether that's through pricing actions or continuous improvement activities are just new product introductions that give us those opportunities as well. And then I think it's always been a priority for us to continue to closely manage our corporate costs, make sure that they're aligned with services that are providing value and improving efficiency. As we always say, continuing to drive innovation and providing solutions for our customers to enhance our partnership with those key customers as well. And then finally, continuing to assess our portfolio management.

持續恢復原材料以外的成本影響，無論是透過定價行動或持續改善活動，新產品的推出也為我們提供了這些機會。我認為繼續密切管理企業成本始終是我們的首要任務，確保它們與提供價值和提高效率的服務保持一致。正如我們常說的，繼續推動創新並為我們的客戶提供解決方案，以加強我們與這些關鍵客戶的合作關係。最後，繼續評估我們的投資組合管理。

So we see that there's opportunity for us to continue to drive improvement for the longer term across the company beyond just the restructuring. There's restructuring is certainly important. It's near-term focus but (inaudible) these things. So I think we need to get to some visibility about the volume recovery, get more progress going on the restructuring and get some more insights into the benefits from some of these other items I mentioned, and then we'll get those targets back on the table. But certainly, we believe it's something that's important, and we're focused on it.

因此，我們認為，除了重組之外，我們還有機會繼續推動整個公司的長期改善。重組當然很重要。這是近期的焦點，但（聽不清楚）這些事情。因此，我認為我們需要對銷售恢復有一定的了解，在重組方面取得更多進展，並對我提到的其他一些項目的好處有更多的了解，然後我們將重新實現這些目標桌。但當然，我們相信這是重要的事情，我們正在關注它。

Okay. Okay. That's helpful. And then maybe I'll sneak one last one in for Ben. Everyone will get one this morning, which is, Ben, can you walk us through the change, when we think about the $500 million of operating cash flows from '23 relative to the $325 million to $375 million that you guided us to -- for this year? And then I guess with that, too, when you think about the long-term cash generation of Leggett, where can that come together? And how do we think about, again, what these changes will mean for the cash flow of the business?

好的。好的。這很有幫助。然後也許我會偷偷地為本帶最後一張。今天早上每個人都會得到一個答案，那就是，Ben，當我們考慮23 年以來5 億美元的營運現金流相對於您指導我們的3.25 億美元到3.75 億美元的營運現金流時，您能否向我們介紹一下這項變化——今年？然後我想，當你考慮 Leggett 的長期現金產生時，這些可以在哪裡結合起來？我們如何思考這些變化對企業的現金流意味著什麼？

Yes, thanks for the question. I appreciate it. Yes. So our guidance for this year is $325 million to $375 million as compared to roughly $500 million in 2023. So I'd say the biggest drivers there are the contribution that we had from improvements in working capital in 2023, we're really outstanding. Our teams did a great job and we drove over $100 million of working capital improvements. So that will be a contributor to cash flow in 2024 but it will be a much lower contributor because we've done such a great job. And just those opportunities are still there. We still think we have some pockets but it will be a little bit more smaller in nature.

是的，謝謝你的提問。我很感激。是的。因此，我們今年的指引為 3.25 億至 3.75 億美元，而 2023 年約為 5 億美元。所以我想說，最大的推動因素是我們 2023 年營運資本改善的貢獻，我們真的非常出色。我們的團隊做得非常出色，我們推動了超過 1 億美元的營運資金改善。因此，這將是 2024 年現金流的貢獻者，但貢獻率要低得多，因為我們做得非常好。這些機會仍然存在。我們仍然認為我們有一些口袋，但本質上會更小一些。

And then the second thing I'd mention is just the lower earnings with the volumes continuing to be lower, that's going to be another contributor to the lower cash flow this year. And then the last thing is there's a little bit of a drag from the cash costs associated with our restructuring plan that will be a bit of a drag again on cash flow.

我要提到的第二件事是收入下降，銷量持續下降，這將是今年現金流下降的另一個原因。最後一件事是，與我們的重組計劃相關的現金成本有點拖累，這將再次對現金流產生一點拖累。

If we think about from a longer-term perspective, I think it kind of goes back to the things Mitch and Tyson were just talking about with the actions that we're taking through, the restructuring and just other opportunities to drive operational efficiencies, those will really benefit us and especially as those volumes come back. I think Mitch just said it that it's such a huge benefit to us with those incremental margins when those volumes are back to just normal levels or somewhere close to normal levels. So those are the biggest drivers. But I'd mention, we'll continue to manage our working capital really tightly and look for those opportunities to drive out costs and lower value items as well. But over the long run, I think that's kind of how I think about it.

如果我們從更長遠的角度思考，我認為這可以追溯到米奇和泰森剛剛談論的事情，即我們正在採取的行動、重組和其他提高營運效率的機會，這些將使我們真正受益，尤其是當當這些數量恢復時。我認為米奇剛剛說過，當這些銷量恢復到正常水平或接近正常水平時，這些增量利潤對我們來說是一個巨大的優勢。所以這些都是最大的驅動因素。但我要提到的是，我們將繼續嚴格管理我們的營運資金，並尋找這些機會來降低成本和降低價值的項目。但從長遠來看，我認為這就是我的想法。

Our next question comes from the line of Bobby Griffin with Raymond James.

我們的下一個問題來自鮑比·格里芬和雷蒙德·詹姆斯的對話。

Let me also echo a big thank you and congratulations to Susan on your retirement. It's been great working and getting to know you for the last 10 years.

讓我也向蘇珊表達衷心的感謝和祝賀，祝賀您退休。過去十年來工作並認識你真是太棒了。

Thanks, Bobby. I appreciate you too.

謝謝，鮑比。我也很欣賞你。

I guess first, maybe let's start off in the Bedding segment. Obviously, a lot going on here to unpack with the restructuring stuff. I guess the first aspect I wanted to talk about is just the difference in the performance of Comfort Core, and I guess the Open Coil part of the business. And I'm asking more in kind of the context of by my math, it looks like Bedding innerspring volumes for Leggett versus 2019 are down, call it, mid- to high 30s. And the industry collectively is down maybe mid-20s to high 20s, right? So there's a fairly big gap there in Leggett volumes versus industry volumes.

我想首先，也許讓我們從床上用品部分開始。顯然，這裡發生了很多事情來解開重組的內容。我想我想談的第一個方面只是Comfort Core的效能差異，我猜是Open Coil部分的業務。我問的更多是根據我的數學計算，與 2019 年相比，Leggett 的床上用品內置彈簧銷量下降了，可以說是下降了 30 多歲。整個產業的整體下滑幅度可能是 20 多歲到 20 多歲，對嗎？因此，禮恩派的銷售量與產業銷售之間存在相當大的差距。

And so I'm asking, are the Open Coil customers going elsewhere, sourcing differently? Like what is driving that gap? And then kind of when we look at the go-forward, how do we think about this restructuring and how it impacts the business with your vertically integrated steel mill because I think volumes really need to run through that to make that profitable. So just kind of connecting all that aspect is the question.

所以我想問，開線圈客戶是否會去其他地方，以不同的方式購買？是什麼造成了這種差距？然後，當我們展望未來時，我們如何看待這次重組，以及它如何影響垂直一體化鋼廠的業務，因為我認為銷量確實需要經歷這一過程才能實現盈利。因此，將所有這些方面聯繫起來就是問題所在。

Tyson, I'll be happy to hand it over to you.

泰森，我很樂意把它交給你。

Sure thing. Thanks for the question, Bobby. So I'll start just with the Open Coil part. We have seen just a long-term trend down in that category. Some of it has been just a shift from our customers from Open Coil to Comfort Core. So there has been -- some of that drag on Open Coil has just been a shift. There has been some different sourcing options, especially during the pandemic when things were short. And then there's also been some differences in U.S. steel costs versus Europe. So we have seen some growth in imported intersperse, especially on the lower end in Open Coil.

當然可以。謝謝你的提問，鮑比。所以我將從開路線圈部分開始。我們看到該類別的長期趨勢是下降的。其中一些只是我們的客戶從開放式線圈轉向舒適核心的轉變。所以，對 Open Coil 的一些拖累只是一種轉變。有一些不同的採購選擇，尤其是在大流行期間供應短缺的情況下。美國的鋼鐵成本與歐洲也有些差異。因此，我們看到進口散佈的一些成長，特別是在開卷低端。

The other part you didn't mention but does get wrapped up in our volume around innerspring is wire grids. And that's been a significant decline in overall volume. And that's more of just a shift in consumer preference in type of foundations. So that also is impactful in overall volume in our innerspring business.

您沒有提到但確實包含在我們關於內置彈簧的捲中的另一部分是線柵。整體成交量大幅下降。這更多的是消費者對粉底類型偏好的轉變。因此，這也對我們內置彈簧業務的整體銷售產生影響。

The other part of it back to our rod mill, you're absolutely right. I mean volume is a critical part. As we have seen the Open Coil decline in wire grids, a lot of our products that go into Comfort Core also consume more wire because we have products that go fully to the edge, replacing some foam components. So there is still a an offset, even with fewer units, we are still driving tons.

另一部分回到我們的棒磨機，你是完全正確的。我的意思是音量是一個關鍵部分。正如我們看到開式線圈在線柵中的下降一樣，我們的許多進入 Comfort Core 的產品也消耗了更多的線材，因為我們有完全延伸到邊緣的產品，取代了一些泡沫部件。因此，仍然存在抵消，即使單位數量減少，我們仍然在行駛大量。

And right now, it is a big drag because overall it's the market where we are, we do have open capacity at the rod mill. But between market recovery and some of our efforts just to diversify out and selling into some industrial markets, we still feel good about the overall capacity utilization at (inaudible).

現在，這是一個很大的阻力，因為總的來說，這是我們所處的市場，我們的棒磨機確實有開放產能。但在市場復甦和我們為多元化並向某些工業市場銷售所做的一些努力之間，我們仍然對（聽不清楚）的整體產能利用率感到滿意。

I guess two follow-ups on that, Tyson. I mean the different sourcing options that are popping up, I've noticed as well kind of just checking the industry. Are those -- is there a way to compete better against those? Does -- do we need to have lower pricing? Or do we have some type of different product offering to compete against the different sourcing options to maintain those customer relations? And then just more of a financial question. Hypothetically, if the -- or I guess not hypothetically, if the rod mill goes back to full capacity, what does that benefit? What is the drag on segment profitability from the rod mill running at partial capacity today?

我想對此有兩個後續行動，泰森。我的意思是正在出現不同的採購選項，我也注意到只是檢查了該行業。有沒有辦法更好地與它們競爭？我們是否需要降低定價？或者我們是否提供某種類型的不同產品來與不同的採購選項競爭以維持這些客戶關係？然後更多的是一個財務問題。假設，如果——或者我猜不是假設，如果棒磨機恢復到滿載運轉，這有什麼好處？目前，棒磨機僅部分產能運行，對部門獲利能力有何拖累？

Sure. Yes. So to your first question. Yes, I mean, our biggest job is to help our customers succeed. And so we want to make sure that we're giving them options to compete with especially just low-priced goods. So we will help them with VA/VE opportunities even on the low end but also offering them different product options that help them compete there. I mean our restructuring effort is a big part of that as well. I mean us becoming more efficient utilizing our assets in a more efficient way in distribution is in a large part to serve our customer better and help them succeed.

當然。是的。那麼對於你的第一個問題。是的，我的意思是，我們最大的工作就是幫助我們的客戶成功。因此，我們希望確保為他們提供與特別是低價商品競爭的選擇。因此，我們將幫助他們獲得 VA/VE 機會，即使在低端市場，但也會為他們提供不同的產品選擇，幫助他們在那裡競爭。我的意思是我們的重組工作也是其中的重要組成部分。我的意思是，我們在分銷方面以更有效的方式更有效地利用我們的資產在很大程度上是為了更好地服務我們的客戶並幫助他們取得成功。

So all of those things factored in. I mean, definitely around the innovation, trying to do the VA/VE work and giving the different options is a way to help offset some of those low-price options. And then overall, I mean, not just in the rod mill, but running all the way through our vertically integrated (inaudible) Spring value chain and also at ECS, the volume has, by far, the most significant impact to our margin profile. So that would be the biggest driver of recovery overall for the vending segment.

所以所有這些因素都考慮在內。我的意思是，絕對圍繞著創新，嘗試做 VA/VE 工作並提供不同的選擇是幫助抵消一些低價選擇的一種方法。總的來說，我的意思是，不僅在棒磨機中，而且在我們的垂直整​​合（聽不清楚）Spring 價值鏈以及 ECS 中，銷量迄今為止對我們的利潤狀況影響最大。因此，這將是自動販賣機領域整體復甦的最大動力。

Tyson, maybe just to add on there. So a little bit in the -- what you talked about is refocusing our strategy and not just focusing on volumes. So if we talk about the Open Coil opportunities that are there and we could go chase pricing but that comes with our risk, right? In terms of some of the financial stability to participate in the market today and just what the margin profile of those products would look like.

泰森，也許只是補充一下。因此，您談到的是重新調整我們的策略，而不僅僅是關注數量。因此，如果我們談論那裡的開路線圈機會，我們可以追逐定價，但這會帶來風險，對嗎？就當今參與市場的一些財務穩定性以及這些產品的利潤狀況而言。

Do you agree with that?

你同意嗎？

Perfect. And I guess, Mitch, switching gears here, and sorry just to kind of 0 on margins but I think that is the kind of the debate over the next couple of years. A lot of news in The bedding products and getting that restructured differently, specialized roughly a 10-ish percent EBIT margin versus historical high teens levels, auto production globally is coming back. What is the other aspects that need to happen there to rebuild the margin profile of that business over the next, call it, 1, 2 and 3 years?

完美的。我想，米奇，在這裡換個方向，抱歉，利潤率只是 0，但我認為這就是未來幾年的爭論。床上用品領域有很多新聞，並進行了不同的重組，與歷史最高水平相比，息稅前利潤率約為 10% 左右，全球汽車生產正在回升。為了在未來（即 1 年、2 年和 3 年）重建該業務的利潤狀況，還需要採取哪些其他措施？

I think, Bobby. I think that we have been making progress as we've gone through the last couple of years. We've seen still a lot of dynamics in the automotive industry but we definitely see volume coming back and that's helping and we see improved margins in automotive. We still have work to do and room to make those improvements but we're definitely on the right path. Similarly, although it's smaller in Aerospace, very strong backlogs in the industry. So that volume will continue to come back, again, not as large of an impact as automotive but it certainly will help.

我想，鮑比。我認為我們在過去幾年中一直在取得進步。我們看到汽車產業仍然充滿活力，但我們確實看到銷量回升，這很有幫助，而且我們看到汽車產業的利潤率有所提高。我們仍然有工作要做，還有改進的空間，但我們絕對走在正確的道路上。同樣，儘管航空航太領域規模較小，但該產業的積壓情況非常嚴重。因此，這一銷量將繼續回升，雖然影響不像汽車那麼大，但肯定會有所幫助。

And then we're seeing a little bit of a challenge in the year -- in this year on Hydraulics, where there's really strong backlogs, both in material handling and heavy construction markets. And we see the strong backlog at least through the first half in the U.S. on that part of the market. But the heavy construction side in Europe, particularly in Germany, it seems like it may be a little bit more challenged in demand. So we'll see some ups and downs. But I think that the progress that we've made over the last couple of years in specialized, I think, demonstrates our confidence in the ability to return back to a higher margin profile, certainly, maybe it doesn't go back to the peak margins that we had. But certainly back to the higher margin profile that will provide a lot of benefit to the company.

然後我們今年看到了一些挑戰——今年在液壓方面，在物料搬運和重型建築市場上，積壓確實很嚴重。我們至少在上半年看到美國這部分市場的積壓情況很嚴重。但歐洲的重型建築方面，尤其是德國，似乎在需求方面面臨更大的挑戰。所以我們會看到一些起伏。但我認為，過去幾年我們在專業化方面取得的進展表明我們對恢復更高利潤率的能力充滿信心，當然，也許它不會回到巔峰我們擁有的利潤。但肯定會回到更高的利潤率，這將為公司帶來許多好處。

(Operator Instructions) Our next question comes from the line of Peter Keith with Piper Sandler.

（操作員說明）我們的下一個問題來自 Peter Keith 和 Piper Sandler 的對話。

This is Alexia Morgan on for Peter Keith. My question is on antidumping scenarios. I know we're expecting a decision later this month. Can you give us an update on antidumping legislation? And then what are the best and worst-case outcomes that you're thinking about once there's a ruling?

這是彼得·基思的亞歷克西婭·摩根。我的問題是關於反傾銷情況。我知道我們預計本月晚些時候會做出決定。您能否向我們介紹反傾銷立法的最新情況？那麼一旦做出裁決，您正在考慮的最好和最壞情況的結果是什麼？

Sure. This is Tyson. I'll jump in and tackle that one. So yes, we're a party to that. And kind of what we said in past cases, the U.S. industry just needs a level playing field, and that's really what the industry is after. No matter which scenario we think might play out. We fully expect to see some level of imported mattress activity. It may move around to some different countries. There may be some shoring in the U.S. for foam importers. But we still see that dynamic playing out regardless of scenario.

當然。這是泰森。我會跳進去解決這個問題。所以，是的，我們是其中的一方。就像我們在過去的案例中所說的那樣，美國產業只需要一個公平的競爭環境，而這正是該產業所追求的。無論我們認為可能出現哪種情況。我們完全期望看到一定程度的進口床墊活動。它可能會轉移到一些不同的國家。美國可能會為泡沫進口商提供一些支持。但無論情況如何，我們仍然看到這種動態的上演。

It really is difficult to say how much will come back to U.S. producers just given potential moves to other regions. Also right now, things are a little muddy just because ahead of a potential decision. We have seen a higher level of imports over the last couple of quarters, just I think with some of the importers attempting to get in ahead of any impose duties. So that will take some time to work through, especially in a really soft market. So we'll see what kind of overhang there is in kind of the near term. But overall, I think we would see just that kind of helps support the continued hub of the industry. So overall, I think we'd say it's still to be determined how much impact would come back to the U.S. producers.

考慮到可能轉移到其他地區，很難說美國生產商會得到多少回報。現在，事情也有點混亂，因為在可能的決定之前。過去幾季我們看到了更高的進口水平，我認為一些進口商試圖在徵收關稅之前進入市場。因此，這需要一些時間才能解決，尤其是在市場非常疲軟的情況下。因此，我們將看看近期會出現什麼樣的懸而未決的情況。但總的來說，我認為我們會看到這種幫助支持該行業的持續中心。因此，總的來說，我認為我們仍需確定美國生產商將受到多大影響。

Okay. And then my next question is related to spring and foam pricing. Is there any deflation within those categories? And then any deflation baked into the sales outlook?

好的。我的下一個問題與彈簧和泡沫定價有關。這些類別中是否有通貨緊縮？那麼銷售前景是否會受到通貨緊縮的影響呢？

Sure. I'll take that one as well. Yes, we've seen commodities at prices, both chemicals and steel moderate over the last year. So over the last year, we've seen pricing in our Specialty Foam business decline as we've been trying to compensate for those client declines given that back to our customers. In our Steel business, we've seen same, last year, we saw middle margins decline overall. We also mentioned in the prepared remarks that we've also adjusted innerspring pricing just relative to overall competitive global steel market.

當然。我也拿那個。是的，去年我們看到大宗商品（化學品和鋼鐵）的價格都很溫和。因此，在過去的一年裡，我們看到特種泡沫業務的定價有所下降，因為我們一直在努力彌補客戶下降的影響，並將其回饋給我們的客戶。在我們的鋼鐵業務中，我們也看到了同樣的情況，去年我們看到中間利潤率整體下降。我們也在準備好的演講中提到，我們也根據全球鋼鐵市場的整體競爭狀況調整了內置彈簧的定價。

In the past, we've seen Europe and U.S. steel be in a pretty tight range but we've seen a divergence of that last year. So we have adjusted pricing just to fairly compensate for that with our customers. As far as 2024, there is -- since most of the steel impact came in the back part of 2023, the full year annualization of those price changes would be reflected in our guidance.

過去，我們看到歐洲和美國鋼鐵價格處於相當窄的區間，但去年我們看到了這種情況的分歧。因此，我們調整了定價，只是為了公平地補償我們的客戶。就 2024 年而言，由於大部分鋼鐵影響發生在 2023 年下半年，這些價格變化的全年年化將反映在我們的指導中。

Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Ms. Branscum for any final comments.

女士們先生們，我們的問答環節到此結束。我將把發言權交還給布蘭斯坎女士，徵求最後的意見。

Thank you for joining us this morning and your interest in Leggett, and have a great weekend.

感謝您今天早上加入我們以及您對 Leggett 的興趣，祝您週末愉快。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。