禮恩派 (LEG) 2024 Q2 法說會逐字稿

At this time, all participants are in a listen only mode. (Operator instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Cassie Branscum from Vice President of Investor Relations Thank you. Please go ahead.

此時，所有參與者都處於只聽模式。（操作員說明） 請注意，本次會議正在錄製中。現在我很高興向您介紹主持人，投資者關係副總裁 Cassie Branscum，謝謝。請繼續。

Good morning, and welcome to Leggett & Platt second quarter 2024 earnings call. With me on the call today are Karl Glassman, CEO; Ben Burns, CFO; Tyson Hagale, President of the Bedding Products segment; Sam Smith, President of the Furniture, Flooring and Textile Products segment, and Helena Tauber, Manager of Investor Relations.

早上好，歡迎參加 Leggett & Platt 2024 年第二季財報電話會議。今天與我一起參加電話會議的是執行長卡爾‧格拉斯曼 (Karl Glassman)；本‧伯恩斯，財務長； Tyson Hagale，寢具部門總裁； Sam Smith，家具、地板和紡織產品部門總裁，Helena Tauber，投資者關係經理。

The agenda for our call this morning is as follows. Karl will discuss our current priorities and demand trends. Ben will cover operating results and additional financial details, including a restructuring update and address our revised outlook for 2024 and the group will answer any questions you have.

我們今天上午的電話會議議程如下。卡爾將討論我們當前的優先事項和需求趨勢。Ben 將介紹營運績效和其他財務細節，包括重組更新並討論我們修訂後的 2024 年展望，該小組將回答您的任何問題。

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.

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。

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 and a restructuring update. Those documents supplement the information we discuss on this call, including non-GAAP reconciliations.

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，其中包含財務資訊摘要以及部門詳細資訊和重組更新。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 標題為風險因素和前瞻性陳述的部分。

I'll now turn the call over to Karl.

我現在將電話轉給卡爾。

Good morning, and thank you for joining our call today. Upon returning to the CEO role in late May, I hit the ground running and have spent a significant amount of time with our team focusing on both our near-term initiatives and longer-term outlook. My priorities are centered around transparent communication with internal and external stakeholders, identifying opportunities for quick wins to drive improved profitability and empowering our people to tackle those projects, ensuring there are clear time lines and accountability for activities underway and acting with a sense of urgency across the business.

早安，感謝您今天加入我們的電話會議。5 月下旬重返執行長職位後，我立即開始工作，並與我們的團隊一起花費了大量時間，專注於我們的近期計劃和長期前景。我的首要任務是與內部和外部利益相關者進行透明的溝通，尋找快速獲勝的機會，以提高盈利能力，並授權我們的員工處理這些項目，確保正在進行的活動有明確的時間表和責任制，並以緊迫感採取行動這門生意。

I am also focused on ensuring that we have a strong team to help move the business forward. And on that note, I'm pleased to share that Cassie, has decided to stay with the company and will continue to lead our IR function. Furthermore, I would like to welcome Sam Smith, President of the Furniture, Flooring and textiles product segment to the call today.

我還致力於確保我們擁有一支強大的團隊來幫助推動業務。就此而言，我很高興地告訴大家，Cassie 已決定留在公司，並將繼續領導我們的 IR 職能。此外，我還歡迎家具、地板和紡織品部門總裁 Sam Smith 參加今天的電話會議。

Sam is joining us to participate in Q&A and will be a regular participant on these calls going forward. Sam joined Leggett 10 years ago and has held several operational roles of increasing responsibility within our home furniture business. He has already spent a tremendous amount of time collaborating with the management teams of each business within the segment as well as assisting me with operational efficiency improvements in a specialized product segment.

Sam 將加入我們參加問答，並將定期參加這些電話會議。Sam 於 10 年前加入禮恩派，並在我們的家居家具業務中擔任過多個營運職務，職責不斷增加。他已經花了大量時間與該細分市場內每個業務的管理團隊合作，並協助我提高專業產品細分市場的營運效率。

I want to emphasize that the strategic priorities discussed on last quarter's earnings call will remain our near to midterm priorities. As a reminder, those priorities are strengthening our balance sheet and liquidity, improving margins by optimizing operations and our general and administrative cost structure and positioning the company for profitable growth opportunities.

我想強調的是，上季財報電話會議上討論的策略重點仍將是我們近期和中期的重點。提醒一下，這些優先事項是加強我們的資產負債表和流動性，透過優化營運以及我們的一般和管理成本結構來提高利潤率，並使公司獲得獲利成長機會。

As you know, last quarter, we announced the decision to reduce our dividend, although it was a difficult decision management and the Board of Directors unanimously agreed that it was the right course of action. We remain committed to maintaining our long-held financial strength and the dividend reduction will help solidify our foundation.

如您所知，上個季度，我們宣布了減少股息的決定，儘管這是一個艱難的決策，管理層也一致認為這是正確的行動方針。我們仍然致力於維持我們長期持有的財務實力，股息減少將有助於鞏固我們的基礎。

Shareholder returns also remain an important long-term capital allocation priority. While our near-term focus is on paying down debt and continuing to invest in our businesses in the future, we expect to more frequently utilize share repurchases to return capital to shareholders. We continue to work toward improved profitability through execution of our restructuring plan and other operational improvement initiatives.

股東回報仍然是長期資本配置的重要優先事項。雖然我們近期的重點是償還債務並在未來繼續投資我們的業務，但我們預計將更頻繁地利用股票回購向股東返還資本。我們繼續透過執行重組計劃和其他營運改善措施來提高獲利能力。

The restructuring plan is on track and some elements of the plan are progressing ahead of schedule and exceeding expectations. In bedding products, we expect restructuring activities within US [spring] to be complete by year end. Through the first half, we have shifted the majority of our innerspring volume into our four larger remaining spring production facilities.

重組計劃正在按計劃進行，部分內容進展超前並超越預期。在床上用品方面，我們預計美國[春季]的重組活動將在年底前完成。上半年，我們已將大部分內置彈簧產量轉移到我們剩餘的四個較大的彈簧生產設施中。

In early third quarter we completed the transition of all innerspring production, the team has done a fantastic job working with our customers to ensure that there are no disruptions during this process, and we now anticipate minimal sales attrition within US spring. We are also seeing improved efficiency flow through our remaining innerspring facilities earlier than expected and anticipate that future improvements in demand will drive incremental efficiency gains.

在第三季初，我們完成了所有內置彈簧生產的過渡，該團隊與客戶合作做得非常出色，確保在此過程中不會出現中斷，我們現在預計美國春季的銷售損耗將降至最低。我們還發現，我們剩餘的內置彈簧設施的效率比預期有所提高，並預計未來需求的改善將推動效率的增量提升。

Restructuring activities within specialty foam are well underway, we have closed one small operation and two additional facility consolidations are in process and should be complete by year end. Internationally we have substantially completed downsizing our Chinese innerspring operation. We still anticipate that all bedding restructuring actions will be complete by the end of 2025.

特種泡沫領域的重組活動正在順利進行，我們已經關閉了一家小型工廠，另外兩個設施整合正在進行中，預計將在年底前完成。在國際上，我們已基本完成了中國內置彈簧業務的縮減。我們仍預期所有床上用品重組行動將在 2025 年底前完成。

In the Furniture, Flooring and Textile Products segment restructuring initiatives are also on track. Our home furniture restructuring activity is essentially complete, and we expect to complete phase one of our flooring products restructuring by the end of the year.

在家具、地板和紡織產品領域，重組措施也已步入正軌。我們的家具重整活動已基本完成，我們預計將在年底前完成地板產品重組的第一階段。

Our second phase of restructuring activity in flooring products will ramp up in the first half of 2025. As we continue to drive operational improvements across the company, we have identified and initiated a small restructuring opportunity within our Specialized Products segment.

我們地板產品的第二階段重組活動將於 2025 年上半年加速。隨著我們繼續推動整個公司的營運改進，我們在我們的專業產品部門中發現並啟動了一個小型重組機會。

Our hydraulic cylinders team is working to increase profitability through manufacturing optimization and operating efficiency improvement. We previously shared that we are initiating a review of our general and administrative cost structure, and we remain optimistic about the potential returns from this activity.

我們的液壓缸團隊致力於透過製造優化和營運效率提高來提高獲利能力。我們之前表示，我們正在啟動對我們的一般和管理成本結構的審查，我們對這項活動的潛在回報保持樂觀。

In the second quarter, we completed a thorough analysis of the G&A structure across our business units and corporate shared services. Now our teams are working to identify the greatest opportunities for improvement, design, necessary organizational changes and organize projects to further streamline processes and resources.

第二季度，我們完成了對各業務部門和企業共享服務的 G&A 結構的全面分析。現在，我們的團隊正在努力尋找改進、設計、必要的組織變革的最佳機會，並組織專案以進一步簡化流程和資源。

Looking ahead, we remain committed to long-term investment in our key businesses, including bedding, automotive and geo components. We are confident that our refocused bedding strategy, which leverages our innerspring and specialty foam innovation to target growth in higher-value semi-finished and finished products is the right path forward.

展望未來，我們仍致力於對床上用品、汽車和地質零件等關鍵業務進行長期投資。我們相信，我們重新調整的床上用品策略是正確的前進道路，該策略利用我們的內置彈簧和特殊泡沫創新來實現更高價值的半成品和成品的增長。

Our automotive business remains healthy and has further growth potential in both comfort and convenience products such as motors and actuators. And we expect to capture additional growth opportunities in our geo components business as we expand our product lines and geographic footprint.

我們的汽車業務保持健康發展，並且在馬達和執行器等舒適和便利產品方面具有進一步增長的潛力。隨著我們擴大產品線和地理覆蓋範圍，我們預計將在地理組件業務中抓住更多成長機會。

Additionally, we are currently conducting a strategic review of our diverse portfolio asking ourselves. If we are the rightful owner of each business and how each one fits into our long-term vision. As we work through our restructuring plan and operational improvement initiatives, including our G&A analysis and we make progress in our portfolio, review a sharper view of our future is emerging.

此外，我們目前正在對我們多元化的投資組合進行策略性審查，並自問。我們是否是每項業務的合法所有者，以及每項業務如何符合我們的長期願景。當我們努力實施重組計劃和營運改善計劃（包括我們的一般管理費用分析）以及我們在投資組合方面取得進展時，我們對未來的看法正在形成。

We will continue gaining visibility in the coming quarters and we'll share additional details as work continues. We also anticipate sharing an updated and comprehensive long-term vision, including financial targets mid-next year. We fully expect that the future Leggett & Platt will be more focused and more profitable.

我們將在未來幾季繼續提高知名度，並隨著工作的繼續分享更多細節。我們也預計分享更新且全面的長期願景，包括明年中期的財務目標。我們充分期待未來的禮恩派將更加專注、更有獲利。

To our employees. Thank you for your hard work and perseverance, your efforts are positioning our Company for long-term success.

致我們的員工。感謝您的辛勤工作和堅持，您的努力使我們公司長期成功。

Now turning to demand trends in our key markets, our second quarter 2024 sales and adjusted earnings were lower than anticipated at the beginning of the quarter. Excluding increased inventory write-downs and reserves and higher bad debt expense, we would have outperformed our adjusted earnings expectations. We now expect 2024 full year sales to be lower than originally estimated due to softer industry demand in multiple end markets and continued raw material deflation.

現在轉向我們主要市場的需求趨勢，我們 2024 年第二季的銷售額和調整後收益低於本季初的預期。排除庫存減記和準備金的增加以及壞帳費用的增加，我們的業績將超出調整後的獲利預期。由於多個終端市場的行業需求疲軟以及原材料持續通貨緊縮，我們目前預計 2024 年全年銷售額將低於最初估計。

Demand in our residential end markets remains weak as consumers continue to delay big ticket discretionary purchases. Additionally, many bedding and furniture industry participants are financially stressed amid a 3rd year of low demand. Against a backdrop of diminished consumer demand, mattresses imported from 12 countries and dumped into the US market by foreign producers have further harmed domestic manufacturers.

由於消費者繼續推遲大宗可自由支配的購買，我們的住宅終端市場的需求仍然疲軟。此外，由於需求連續第三年低迷，許多床上用品和家具行業參與者面臨財務壓力。在消費者需求下降的背景下，從12個國家進口的床墊被外國生產商傾銷到美國市場，進一步損害了國內製造商的利益。

We believe the domestic industry deserves a level playing field, and we are pleased with the determinations that both the United States Department of Commerce and the United States International Trade Commission have recently made regarding the current mattress antidumping case. Since May, the DLC has published final dumping rates for all 12 countries ranging from 4.6% to triple digits.

我們認為國內產業應該有一個公平的競爭環境，我們對美國商務部和美國國際貿易委員會最近就當前床墊反傾銷案做出的決定感到高興。自 5 月以來，DLC 公佈了所有 12 個國家的最終傾銷率，範圍從 4.6% 到三位數不等。

The ITC has finalized orders for eight countries and final orders for the remaining four countries are expected in early September. We estimate US mattress market consumption was down mid-single digits versus 2023 in both the second quarter and first half of this year. While landed mattress import volumes have fallen year to date, inventory build up from late last year is still likely being worked through.

ITC 已最終確定了八個國家的訂單，其餘四個國家的最終訂單預計將於 9 月初完成。我們估計今年第二季和上半年美國床墊市場消費量較 2023 年下降了中個位數。儘管今年迄今床墊進口量有所下降，但去年年底累積的庫存仍有可能解決。

In the second half, we expect industry units will remain below 2023 levels, resulting in full year consumption down mid-single digits. We still expect our 2024 bedding product segment's volume to be down high single digits due to company specific factors, including the loss of a customer and specialty foam and restructuring related sales attrition.

下半年，我們預計工業單位將繼續低於 2023 年的水平，導致全年消費量下降中個位數。我們仍然預計，由於公司特定因素（包括客戶和特殊泡沫的流失以及重組相關的銷售損耗），2024 年床上用品部門的銷售量將出現高個位數下降。

Higher than expected trade rod sales for non bedding applications are expected to partially offset the impact of planned sales attrition, excluding steel rod bedding, product sales directly related to the mattress industry are expected to be down low double digits. The global automotive market is experiencing volatility driven by several factors, while our products are utilized in both internal combustion engine and electric vehicles, geographic differences and the global shift to EVs has resulted in internal combustion engine programs running for longer than planned, leading to delayed program launches and timelines.

高於預期的非床上用品應用的貿易棒銷售預計將部分抵消計劃銷售消耗的影響，不包括鋼棒床上用品，與床墊行業直接相關的產品銷售額預計將下降兩位數。全球汽車市場正在經歷由多種因素驅動的波動，而我們的產品同時用於內燃機和電動車，地理差異和全球向電動車的轉變導致內燃機項目的運行時間比計劃的時間長，導致延遲計劃啟動和時間表。

In Asia the transition to electric vehicles has surged forward while Europe is grappling with cost and affordability challenges. Meanwhile, North America remains indecisive. Additionally, the growth of new Chinese market entrants and increases in Chinese exports, particularly to Europe, is driving further market disruption. Europe has responded by introducing new tariffs but is yet to be seen if this will slow the pace of Chinese imports.

在亞洲，向電動車的轉型正在迅速推進，而歐洲正在努力應對成本和承受能力的挑戰。與此同時，北美仍猶豫不決。此外，中國市場新進業者的成長和中國出口（特別是對歐洲）的增加正在進一步推動市場混亂。歐洲已採取新關稅作為回應，但這是否會減緩中國進口的步伐還有待觀察。

Light vehicle production in major markets is expected to be down low single digits versus 2023, we expect our automotive business will be in line with global production versus our previous assumption of outperformance. This change is largely driven by unfavorable product mix related to the growth of the Chinese electric vehicles.

與 2023 年相比，主要市場的輕型汽車產量預計將下降低個位數，我們預計我們的汽車業務將與全球產量保持一致，而不是我們先前假設的表現優異。這項變化很大程度上是由與中國電動車成長相關的不利產品組合所推動的。

Finally, our geo components business has experienced sluggish project releases in the civil construction market and retail sales have recently been weaker than originally anticipated. We now expect both civil construction and retail full year sales volume to be down low single digits. While low volumes continue to be the most significant headwind to earnings, our initiatives to improve operating efficiency and maintain pricing discipline will drive margin recovery in the near term. With this foundation, we will be well positioned to capture profitable growth opportunities as demand recovers.

最後，我們的土工組件業務在民用建築市場上經歷了專案發布緩慢，零售銷售最近弱於最初預期。我們現在預計民用建築和零售業全年銷售量都將下降到低個位數。雖然低銷售仍是獲利的最大阻力，但我們提高營運效率和維持定價紀律的措施將在短期內推動利潤率復甦。有了這個基礎，我們將能夠在需求復甦時抓住有利可圖的成長機會。

I'll now turn the call over to Ben, to review second quarter financial details, a restructuring update and our revised outlook for the year.

我現在將把電話轉給本，回顧第二季度的財務細節、重組最新情況以及我們修訂後的今年前景。

Thank you, Karl, and good morning, everyone. Second quarter sales were $1.1 billion, down 8% versus the second quarter of 2023 from volume declines primarily in residential end markets and raw material related selling price decreases. Compared to second quarter 2023, sales in our bedding products segment decreased 13%, the loss of a customer within specialty foam, which we expected to impact the back half of 2024 actually began in the second quarter.

謝謝你，卡爾，大家早安。第二季銷售額為 11 億美元，較 2023 年第二季下降 8%，原因主要是住宅終端市場的銷售下降以及與原材料相關的售價下降。與 2023 年第二季度相比，我們的床上用品部門的銷售額下降了 13%，特種泡沫領域的客戶流失，我們預計這將影響 2024 年下半年，但實際上從第二季度就開始了。

Excluding this change, segment sales would have declined high single digits. Second quarter sales and specialized products were flat year over year and sales in Furniture, Flooring and Textile Products were down 6%. Second quarter EBIT was a loss of $614 million, primarily from a $675 million noncash, goodwill impairment charge.

如果排除此變化，該部門的銷售額將會出現高個位數的下降。第二季銷售額和專業產品較去年同期持平，家具、地板和紡織品銷售額下降 6%。第二季息稅前利潤虧損 6.14 億美元，主要來自 6.75 億美元的非現金商譽減損費用。

In connection with the preparation of the second quarter 2024 financial statements, we performed an impairment analysis included that an impairment existed as a result of the significant decline in stock price and current market conditions. Excluding the goodwill impairment charge and other items outlined in yesterday's press release, adjusted EBIT was $71 million, down $21 million versus second quarter 2023, primarily due to increased inventory write-downs and reserves, lower volume, raw material related pricing adjustments and higher bad debt reserves, partially offset by lower amortization expense, operational efficiency improvements and restructuring benefits.

在編製2024年第二季財務報表時，我們進行了減損分析，包括由於股價大幅下跌和當前市場狀況而有減損。不包括昨天新聞稿中概述的商譽減損費用和其他項目，調整後的息稅前利潤為7,100 萬美元，比2023 年第二季減少2,100 萬美元，主要是由於庫存減記和準備金增加、銷售減少、原材料相關的定價調整以及不良貸款增加債務準備金，部分被較低的攤銷費用、營運效率的提高和重組效益所抵消。

Second quarter earnings per share were a loss of $4.39 on an adjusted basis, second quarter EPS was $0.29, a 24% decrease from second quarter 2023 adjusted EPS of $0.38. As always, we are focused on cash generation in the near term, we are prioritizing debt reduction while continuing to fund organic growth. Our long-term priorities for use of cash are funding organic growth, funding strategic acquisitions and returning cash to shareholders through dividends and share repurchases.

調整後第二季每股收益虧損 4.39 美元，第二季每股收益為 0.29 美元，較 2023 年第二季調整後每股收益 0.38 美元下降 24%。像往常一樣，我們在短期內專注於現金生成，我們優先考慮減少債務，同時繼續為有機成長提供資金。我們使用現金的長期優先事項是為有機成長提供資金、為策略收購提供資金以及透過股息和股票回購向股東返還現金。

In the second quarter, operating cash flow was $94 million, a decrease of $17 million versus the second quarter of 2023. This decrease was primarily driven by lower earnings, partially offset by working capital improvements.

第二季營運現金流為 9,400 萬美元，比 2023 年第二季減少 1,700 萬美元。這一下降主要是由於收入下降造成的，但部分被營運資本的改善所抵消。

We ended the quarter with adjusted working capital as a percentage of annualized sales of 14.9%, an improvement of 30 basis points versus second quarter 2023. Cash from operations is still expected to be $300 million to $350 million in 2024. We ended the second quarter with total debt of $2 billion, including $208 million of commercial paper outstanding.

截至本季末，調整後營運資本佔年化銷售額的百分比為 14.9%，比 2023 年第二季提高了 30 個基點。預計 2024 年營運現金仍為 3 億至 3.5 億美元。在第二季結束時，我們的債務總額為 20 億美元，其中未償商業票據為 2.08 億美元。

Net debt to trailing 12 month adjusted EBITDA was 3.83 times at quarter end, in line with our expectation of hitting peak leverage in the second quarter. As a reminder, our covenant calculation is more favorable than our publicly reported leverage ratio, and we remain comfortably below the four times covenant leverage ratio. In the third quarter, we expect to begin progressing toward our long-term target of two times as we used cash previously allocated for the dividend along with 2024 total anticipated proceeds of $35 million to $45 million from idle and restructuring related real estate sales to accelerate debt reduction.

截至季末，淨負債與過去 12 個月調整後 EBITDA 比率為 3.83 倍，符合我們在第二季達到槓桿率高峰的預期。提醒一下，我們的契約計算比我們公開報告的槓桿率更有利，而且我們仍然輕鬆低於四倍契約槓桿率。在第三季度，我們預計將開始朝著兩倍的長期目標邁進，因為我們使用先前分配給股息的現金以及 2024 年閒置和重組相關房地產銷售的 3500 萬至 4500 萬美元預期收益總額來加速債務減少。

We still expect to predominantly use our commercial paper program to repay $300 million of 3.8% 10 year notes maturing in November. Total liquidity was $705 million at June 30, comprised of $307 million of cash on hand and $398 million in capacity remaining under our revolving credit facility.

我們仍預計主要使用我們的商業票據計劃來償還 11 月到期的 3 億美元、利率為 3.8% 的 10 年期票據。截至 6 月 30 日，流動性總額為 7.05 億美元，其中包括 3.07 億美元的手頭現金和 3.98 億美元的循環信貸額度下的剩餘能力。

As Karl mentioned earlier, our team is doing an excellent job executing the restructuring plan. With six months of activity now complete, we are providing an update on some of the financial metrics related to the plan. We originally estimated that these initiatives were reduced sales by approximately $100 million on an annualized run rate basis once fully implemented in late 2025.

正如卡爾之前提到的，我們的團隊在執行重組計劃方面做得非常出色。六個月的活動現已完成，我們將提供與該計劃相關的一些財務指標的最新資訊。我們最初估計，一旦這些措施在 2025 年底全面實施，按年化運行率計算，銷售額將減少約 1 億美元。

We now expect less impact and estimate that sales attrition will be approximately $80 million on an annualized run rate basis after all initiatives are complete. For 2024 we are revising our sales attrition estimate from $40 million to $25 million with $3 million of sales attrition realized in the second quarter.

我們現在預計影響會較小，並估計在所有措施完成後，以年化運行率計算，銷售損耗將約為 8,000 萬美元。對於 2024 年，我們將銷售損耗預估從 4,000 萬美元修改為 2,500 萬美元，其中第二季實現了 300 萬美元的銷售損耗。

Real estate sales associated with the restructuring plan are also going well. Previously, we assume that we would generate up to $10 million in cash from restructuring related real estate sales in 2024 with an additional $50 million to $80 million generated in 2025. We still expect total proceeds of $60 million to $80 million, but now believe properties will sell sooner than originally anticipated and expect proceeds of $15 million to $25 million in 2024 and the balance in 2025.

與重整計畫相關的房地產銷售也進展順利。先前，我們假設 2024 年將透過重組相關房地產銷售產生高達 1,000 萬美元的現金，並在 2025 年額外產生 5,000 萬至 8,000 萬美元的現金。我們仍預計總收益為 6,000 萬至 8,000 萬美元，但現在相信房產的出售時間將比最初預期的更快，並預計 2024 年收益為 1,500 萬至 2,500 萬美元，餘額將在 2025 年實現。

Restructuring costs during the quarter were $11 million, comprised of $9 million in cash costs and $2 million in non-cash costs. The plan remains on track from a cost perspective and there are no changes to our total estimate or timing of costs. In the second quarter, we realized $3 million of EBIT benefit related to the restructuring plan and now expect approximately $10 million to $15 million of EBIT benefit to be realized in 2024 versus our initial estimate of $5 million to $10 million as benefits are flowing through earlier than expected.

本季的重組成本為 1,100 萬美元，其中包括 900 萬美元的現金成本和 200 萬美元的非現金成本。從成本角度來看，該計劃仍處於正軌，我們的總估算或成本時間安排沒有變化。在第二季度，我們實現了與重組計劃相關的300 萬美元的EBIT 效益，現在預計2024 年將實現約1000 萬至1500 萬美元的EBIT 效益，而我們最初估計為500 萬至1000 萬美元，因為效益正在提前流轉比預期的。

We still believe total annualized EBIT benefit of $40 million to $50 million will be realized once the initiatives are fully implemented in late 2025. We are lowering our 2024 sales guidance and narrowing our adjusted EPS guidance range, resulting in a slightly lower midpoint. This change reflects the impacts of lower volume, increased inventory write-downs and reserves and higher bad debt reserves, partially offset by continued strong execution of the restructuring plan, operational efficiency improvements and pricing discipline.

我們仍然相信，一旦這些措施在 2025 年底全面實施，年化息稅前利潤總額將實現 4,000 萬至 5,000 萬美元。我們正在降低 2024 年銷售指引，並縮小調整後每股盈餘指引範圍，導致中點略低。這項變更反映了銷售下降、庫存減記和準備金增加以及壞帳準備金增加的影響，但部分被重組計劃的持續強勁執行、營運效率提高和定價紀律所抵消。

2024 sales are now expected to be $4.3 million to $4.5 billion or down 5% to 9% versus 2023 compared to our prior guidance of $4.35 billion to $4.65 billion. The decrease versus our prior guidance reflects lower expected volumes across our segments and deflationary pressure. Volume is expected to be down low to mid single digits, with volume at the midpoint down high single digits in bedding products, flat in specialized products and down low single digits in Furniture, Flooring and Textile Products.

目前預計 2024 年銷售額為 430 萬美元至 45 億美元，與 2023 年相比將下降 5% 至 9%，而我們先前的指引為 43.5 億美元至 46.5 億美元。與我們先前的指導相比，這一下降反映了我們各部門的預期銷售下降和通貨緊縮壓力。預計銷售量將下降到中位數，其中床上用品銷售將下降高個位數，特種產品銷售量將持平，家具、地板和紡織品銷售量將降低個位數。

Deflation and currency combined are expected to reduce sales low-single digits. 2024 earnings per share are expected to be a loss of $3.43 to a loss of $3.58 versus our prior guidance of $0.95 to $1.25, including the impact of the non-cash goodwill impairment charge, restructuring charges, real estate gains and certain other costs outlined in yesterday's press release.

通貨緊縮和貨幣匯率的共同作用預計將使銷售額減少至個位數。 2024 年每股收益預計為虧損 3.43 美元至 3.58 美元，而我們先前的指引為 0.95 美元至 1.25 美元，其中包括非現金商譽減損費用、重組費用、房地產收益和某些其他成本的影響。的新聞稿。

Full year adjusted earnings per share are expected to be a $1.10 to $1.25 versus our prior guidance of $1.5 to $1.35. As a result, our 2024 full year adjusted EBIT margin range is expected to be 6.5% to 6.9% versus our prior guidance of 6.4% to 7.2%. Our teams are diligently working each day to improve profitability through our strategic initiatives and effective cost management, and we are beginning to see the benefits of these efforts. We look forward to updating you with further progress on this work in the coming quarters.

全年調整後每股收益預計為 1.10 美元至 1.25 美元，而我們先前的指引為 1.5 美元至 1.35 美元。因此，我們在 2024 年全年調整後息稅前利潤率範圍預計為 6.5% 至 6.9%，而我們先前的指引為 6.4% 至 7.2%。我們的團隊每天都在努力工作，透過我們的策略性措施和有效的成本管理來提高獲利能力，並且我們開始看到這些努力的好處。我們期待在未來幾季向您通報這項工作的進一步進展。

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.

謝謝本。接線員，我們準備開始問答。

(Operator instructions)

（操作員說明）

Susan Maklari, Goldman Sachs.

蘇珊·馬克拉里，高盛。

Thank you. Good morning, everyone.

謝謝。大家，早安。

Morning, Susan.

早安，蘇珊。

Good morning, welcome back Karl.

早上好，歡迎卡爾回來。

Thank you, I think it's good to be back, but it's good to speak to you anyway.

謝謝你，我覺得回來很好，但無論如何能跟你說話也很好。

It's good to be back, it's good to have you back. We're happy to have you on these calls. You did a really good job, I think of talking us through a lot of the focus areas and the things that are happening at Leggett as you've stepped back into this role, can you talk about what your clear priorities are at this point and how you're thinking about the positioning of the business and the things that you're especially focused on as you think about that several quarters.

很高興回來，很高興你回來。我們很高興您接聽這些電話。你做得非常好，我想向我們介紹很多重點領域以及當你重新擔任這個角色時禮恩派正在發生的事情，你能談談你目前明確的優先事項是什麼嗎？您在這幾個季度中特別關注的事情。

It's really to be incredibly transparent with you, the investment community and with our employees that we're in a tough environment. And transparency is always important but probably never more important than it is now, it's also to have just kind of quick wins to continue to do the blocking and tackling that's required to improve our profitability. And at the same time, just empowering our people to make decisions to know that they're supported and we're all in this together.

對於您、投資界和我們的員工來說，我們確實處於一個艱難的環境中，這確實是非常透明的。透明度始終很重要，但可能從未像現在這樣重要，這也是為了能夠快速獲勝，繼續進行阻止和解決，以提高我們的盈利能力。同時，讓我們的員工做出決定，讓他們知道他們得到了支持，並且我們都在一起。

At the same time we're establishing really a sense of accountability and urgency that maybe was lacking, that's really important. We're also I can't be more pleased with where the restructuring plan is staying focused on the restructuring plan is really important. Tyson and his team have done a terrific job with what really is a heavy lift to get through the first phase of that in US bring as quickly as they have is truly remarkable.

同時，我們正在建立一種可能缺乏的責任感和緊迫感，這非常重要。我對重組計劃的重點感到非常滿意，因為重組計劃非常重要。泰森和他的團隊做得非常出色，他們在美國以如此快的速度完成第一階段的任務確實是一項艱鉅的任務，這確實是了不起的。

When you think about the size and scope of those activities sustain and involved in that analysis and kind of talking through Phase 2, at the same time, always prioritizing customer relationships and product innovation. The stickiness of our relationship with our customers is really important to us and the responsibility that they they kind of share with us for innovation going forward. So we spent a lot of time on that.

當您考慮這些活動的規模和範圍時，請維持並參與第二階段的分析和討論，同時始終優先考慮客戶關係和產品創新。我們與客戶的關係的黏性對我們來說非常重要，他們與我們共同承擔未來創新的責任。所以我們花了很多時間在這上面。

We're also spending a lot of time kind of dealing with what is it looked like five years from now, what's our positioning of what it's really a portfolio management review in terms of what businesses should we be in? And then at the same time, trying to accelerate profitable growth in the businesses that we remain in and balancing that. So there's more to come, there's been a lot of work, really good work done there, but I couldn't be more pleased with how the team is interacting and kind of rising to the occasion is typical Leggett style. But thanks for the questions Susan. I'm sorry. So long-winded but there's a lot going on.

我們也花了很多時間來處理五年後的情況，我們對真正的投資組合管理審查的定位是什麼，也就是我們應該從事哪些業務？同時，努力加速我們現有業務的獲利成長並平衡這一點。所以還有更多的事情要做，已經做了很多工作，確實做得很好，但我對團隊的互動方式感到非常滿意，而且隨機應變是典型的 Leggett 風格。但謝謝蘇珊的提問。對不起。雖然很囉嗦，但是發生了很多事。

No, that was a good answer, and it's great to hear how things are coming together. Very encouraging. So thank you for the color and maybe shifting to bedding more specifically, you mentioned that there's been some moving parts in there. Of course, there was a loss of the customer in the specialized foam piece.

不，這是一個很好的答案，很高興聽到事情進展順利。非常鼓舞人心。謝謝你的顏色，也許更具體地說是床上用品，你提到那裡有一些活動部件。當然，專用泡棉片也造成了客戶的流失。

Maybe can you talk a bit about the new products and some of the other efforts that like it's going through to help revitalize and regain share with some of your existing customers, what does it mean for those betting volumes and maybe especially within that specialized film piece. And how do we think about the mix shift overall and how that's perhaps going to come together over time as some of these things gain momentum.

也許您可以談談新產品以及其他一些努力，這些努力正在經歷，以幫助振興並重新獲得一些現有客戶的份額，這對這些投注量意味著什麼，尤其是在那個專門的電影片段中。我們如何看待整體的混合轉變，以及隨著其中一些事情的發展勢頭，隨著時間的推移，這種轉變可能會如何結合在一起。

You are a master at asking a complex question. So therefore, but I'm a master and handing it off. So I'll ask Tyson to answer that question. But Susan, before I do you know, many of the listeners know that I've been around the bidding industry literally all my life and the changes that the industry is going through right now are remarkable. They're unprecedented, I will tell you, in retrospect, 2008 through 2010 was easy to manage through compared to what the team is managing through right now in terms of the rate of change. So with all of that said, Tyson please trying to unravel that giant ball.

您是提出複雜問題的大師。所以，但我是一個大師並且把它交給了。所以我請泰森來回答這個問題。但是蘇珊，在我知道之前，許多聽眾都知道我一生都在投標行業，而且該行業目前正在經歷的變化是引人注目的。我會告訴你，這是前所未有的，回想起來，從變化率來看，與團隊現在所管理的情況相比，2008 年到 2010 年是很容易管理的。話雖如此，泰森請嘗試解開那個巨大的球。

Sure, thanks Karl. Good morning Susan, I appreciate question. Let me let me go through a few things with you. I'll start by saying our development teams are extremely busy right now working with several of our critical customers on innovation projects, and it's really true across the segment, but really most specifically with our spring group and a high percentage of our resources are spending time working on projects that are committed to launch and they're high volume and long-term opportunities.

當然，謝謝卡爾。早上好，蘇珊，我很高興提問。讓我和你一起經歷一些事情。首先我要說的是，我們的開發團隊現在非常忙於與我們的幾個關鍵客戶合作開展創新項目，這在整個細分市場都是如此，但最具體的是我們的彈簧團隊，我們的很大一部分資源都花在了將時間花在致力於啟動的專案上，這些專案是大量且長期的機會。

So they're really critical for both us and our partners and really this is like Karl said, this is a really critical service and function and how we work together with our customers, we depend on one another. And so this is a really encouraging thing is despite the current challenges that Karl has outlined, this is a really encouraging sign for us and getting through these projects is really critical.

因此，它們對我們和我們的合作夥伴都非常重要，就像卡爾說的那樣，這是一項非常重要的服務和功能，以及我們與客戶合作的方式，我們相互依賴。因此，這是一件非常令人鼓舞的事情，儘管卡爾概述了當前的挑戰，但這對我們來說是一個非常令人鼓舞的跡象，完成這些專案非常關鍵。

And it is a really tough market. And the second thing would be it's always competitive right now, it's extremely competitive and we're not ignoring any opportunities that we have even in the short term to work with customers on opportunities that make sense for us and for them. And we've talked a little bit and some of the past calls about some of our innovation that helps us in this category are eco base and automated foaming case comfort, core unit kind of production.

這是一個非常艱難的市場。第二件事是，它現在總是具有競爭力，競爭非常激烈，我們不會忽視任何我們擁有的機會，即使在短期內，與客戶合作，尋找對我們和他們都有意義的機會。我們已經談過一些，過去的一些電話談到了我們在這一類別中幫助我們的一些創新，包括生態基礎和自動化泡沫箱舒適度、核心單元類型的生產。

And these are both really labor and manufacturing efficient projects. And so these are some tools that we have that we can work with our customers even in a really tough environment to help them and gives us a chance to regain some market share. So those are really really important things for us in the short term as well.

這些都是真正有效率的勞動力和製造項目。因此，我們擁有一些工具，即使在非常艱難的環境中，我們也可以與客戶合作，幫助他們，並​​使我們有機會重新獲得一些市場份額。因此，從短期來看，這些對我們來說也非常重要。

And then CDCS, you mentioned that you can see the second quarter we did have an earlier than expected loss of a customer. But without that, we did have some volume improvement year over year, and we've seen this for the last several quarters, and it's the result of a lot of hard work from our commercial teams at ECS and diversifying the customer base, selling accessories components and finished mattress projects, specifically with some private label customers.

然後CDCS，您提到您可以看到第二季度我們確實比預期提前失去了客戶。但如果沒有這些，我們的銷量確實逐年有所提高，而且我們在過去幾個季度中都看到了這一點，這是我們 ECS 商業團隊大量辛勤工作的結果，並使客戶群多樣化，銷售配件組件和成品床墊項目，特別是與一些自有品牌客戶合作。

So we have been seeing the benefits grow through a lot of that effort, and we'll see some more of that in the back half of the year. We have some more things in the pipeline. But that said, we have a lot of work to do there there and there will be some ups and downs. And we're in the middle of restructuring that also impacts specialty foam. So there will be some some things that come and go, but we're working hard on it and feel good about the progress we're making.

因此，我們已經看到透過大量努力所帶來的好處不斷增長，並且我們將在今年下半年看到更多的好處。我們還有更多事情正在醞釀中。但話雖如此，我們還有很多工作要做，並且會有一些起伏。我們正在重組，這也會影響特種泡沫。因此，會有一些事情來來去去，但我們正在努力工作，並對我們所取得的進展感到滿意。

And I'd also add is part of specialty foam. Our Peterson chemical team has been really, really busy with some development projects as well. And they have a couple of products that they've been sharing with at some of the recent trade shows that they're excited about our customers are excited about. So that's some good progress as well.

我還要添加特種泡沫的一部分。我們的 Peterson 化學團隊也非常非常忙於一些開發案。他們在最近的一些貿易展上分享了一些產品，他們對我們的客戶感到興奮。所以這也是一些好的進展。

So I guess to tie all that together I know that's a long answer and not all of this will benefit us overnight, but I think it's really exciting and encouraging that even in a challenging market there customers are working with us on some new development and things that will pay some long-term dividends for us in them.

因此，我想將所有這些結合在一起，我知道這是一個很長的答案，並不是所有這些都會讓我們在一夜之間受益，但我認為即使在充滿挑戰的市場中，客戶也正在與我們合作開發一些新的產品和產品，這確實令人興奮和鼓舞這將為我們帶來一些長期紅利。

Okay, that's great color. Thank you, Tyson. And I just wanted to get one more in because I think this was a bright spot in the quarter and I want to make sure we touch on it. And it's SSNT, they had a very nice margin. They came in about 80 basis points ahead of where.

好吧，這個顏色真棒。謝謝你，泰森。我只是想再加入一個，因為我認為這是本季度的一個亮點，我想確保我們能夠觸及它。這是 SSNT，他們有非常好的利潤。他們領先了大約 80 個基點。

We were the margin was up year over year, and that was even with those volumes down a bit in there. Can you just talk about the success that they're seeing and the ability to continue to execute at that level even with this tough demand environment?

我們的利潤率逐年上升，即使銷量略有下降。您能否談談他們所看到的成功以及即使在這種嚴峻的需求環境下繼續以該水平執行的能力？

Yeah, Sam, why don't you? I appreciate the really the accolades Sam and his team are doing a great job. Those businesses are really well managed. But Sam, if you would want to respond.

是的，山姆，你為什麼不呢？我很欣賞 Sam 和他的團隊所做的出色工作所獲得的榮譽。這些企業確實管理得很好。但是山姆，如果你想回應的話。

Sure, Karl, thanks for the question, Susan, really appreciate it. So first off, let me just say that we've got some great teams and some great leaders across these businesses.

當然，卡爾，謝謝你的提問，蘇珊，真的很感激。首先，我想說的是，我們在這些業務中擁有一些出色的團隊和一些出色的領導者。

They've always been good, but over the last four years with the wild spikes and the drops that we've seen in volume, commodity costs, freight rates, manufacturing costs, all these things have told us really to be even better leaders. For example, we learned out of very quickly analyze where we are from a cost and margin perspective.

它們一直都很好，但在過去的四年裡，我們看到銷量、商品成本、運費、製造成本的急劇上升和下降，所有這些都告訴我們確實需要成為更好的領導者。例如，我們從成本和利潤的角度快速分析了我們所處的位置。

We learned to really anticipate where we believe volumes are going to go and where costs are going to go in the near term, we've learned how to it's really our decision to mitigate some of the cost increases like the restructuring efforts that we're working through right now in Florida that we've essentially finished and home Furniture. We've learned how to have some really difficult conversations with ourselves with our customers and with our vendors.

我們學會了真正預測我們認為短期內銷售將走向何方以及成本將走向何方，我們已經學會瞭如何真正決定減輕一些成本增加，例如我們正在進行的重組工作目前在佛羅裡達州的工作已經基本完成，家具也已經完成。我們已經學會如何與我們自己、我們的客戶和我們的供應商進行一些非常困難的對話。

And as we've done all these hard things, I think our teams really gained a lot of confidence in themselves and in their abilities to kind of control what they could control and to really deliver on what they need to deliver on. So I think these abilities and our growing confidence are really what's allowed us to deliver on this bright, great pricing discipline that you see in a really tough environment.

當我們完成所有這些困難的事情時，我認為我們的團隊確實對自己和他們的能力充滿了信心，他們有能力控制他們可以控制的事情，並真正實現他們需要實現的目標。因此，我認為這些能力和我們不斷增長的信心確實使我們能夠在非常艱難的環境中實現這一光明、偉大的定價紀律。

So bottom line, I think we're becoming more agile, more focus and really better overall business leaders. So when volumes do start getting better, I think we're going to be able to use the skills and our confidence that we've learned to positively grow on the upside. I think it's too early to really speculate what that looks like from a magnitude perspective. But we're in a lot better position to handily up your upside appropriately, but cause handling downtime made us a lot better.

所以最重要的是，我認為我們正在變得更加敏捷，更加專注，並且真正成為更好的整體業務領導者。因此，當銷量確實開始好轉時，我認為我們將能夠利用我們學到的技能和信心來積極成長。我認為現在從規模角度來真正推測它是什麼樣子還為時過早。但我們處於更有利的位置，可以輕鬆地適當地提高您的優勢，但處理停機時間使我們變得更好。

Good. All right. Well, that's great to hear. I'll re-queue with some other questions, but I'll let you guys go for now. Thank you all for that color. It was great.

好的。好的。嗯，很高興聽到這個消息。我會帶著其他一些問題重新排隊，但現在我讓你們先走。謝謝大家給我這個顏色。太好了。

Thanks, Susan.

謝謝，蘇珊。

Bobby Griffin, Raymond James.

鮑比·格里芬、雷蒙德·詹姆斯。

Good morning buddy, thanks for taking my questions and Karl good to talk to again?

早安，夥計，感謝您提出我的問題，很高興再次與卡爾交談？

Yes. So it goes both ways. Thanks Bobby.

是的。所以這是雙向的。謝謝鮑比。

And thank you for all the details in the slides that you and I our team on the restructuring initiatives very helpful to kind of see that laid out visually. So I appreciate it.

感謝您和我的團隊在幻燈片中提供的關於重組舉措的所有細節，對於直觀地看到這些細節非常有幫助。所以我很感激。

You're welcome.

不客氣。

I guess first one for me, Karl, is going to start maybe with the auto business, actually a lot of different shifts kind of going on there between the adoption of EVs, maybe slower in some areas, faster and others, the Chinese entrance into Europe and I guess maybe there still is a debate on where inventory levels go in the US from obviously the COVID impact. Can you just maybe unpack kind of those dynamics and how Leggett is positioned for those and where as opportunities are where my investments need to be?

我想卡爾對我來說第一個可能會從汽車行業開始，實際上在電動車的採用之間發生了很多不同的轉變，在某些領域可能會慢一些，而在其他領域可能會更快，中國進入歐洲和我想也許仍然存在關於美國庫存水準明顯受新冠疫情影響的爭論。您能否解釋一下這些動態以及禮恩派如何針對這些動態進行定位，以及我需要投資的機會在哪裡？

Yeah, Bobby, thanks for the question. And like many of our markets on global automotive is a bit of a challenge. As you said, the EV adoption is very different depending on what region we operate in. And as you know, that's a very global business. Overall it probably is good for us, but not so good from a total industry demand perspective in that the current IHS forecast shows global build in the major markets down 2%, we think that it will probably be shifted down as a release again.

是的，鮑比，謝謝你的提問。就像我們在全球汽車領域的許多市場一樣，這也是一個挑戰。正如您所說，電動車的採用情況因我們所在地區的不同而有很大不同。如您所知，這是一項非常全球化的業務。總體而言，這可能對我們有利，但從整個行業需求的角度來看，情況不太好，因為當前的 IHS 預測顯示主要市場的全球建設下降了 2%，我們認為它可能會再次下調發布。

There's probably more of a hockey stick in 4Q than as appropriate. We've readjusted our thinking and that's embedded in our current guidance. Our teams are dealing with elongated programs on ice vehicles in certain markets, an acceleration of EV adoption and others.

第四季度的曲棍球棒可能比適當的多。我們重新調整了我們的想法，並將其納入我們目前的指導方針中。我們的團隊正在處理某些市場中冰雪車輛的長期項目、加速電動車的採用等。

And I do want to make it clear that we do have content on the Chinese BYD is biggest, but there's a number of them that we certainly have content there. When we take our sales forecast down it's because the dollars of sales per each unit are less than originally anticipated in an EV model. But we take profitability down at a lesser rate because our profit margins on those legacy models, which are very heavy weighted to mechanical lumber cars, where we have a very, very strong market position.

我確實想明確表示，我們確實有關於中國比亞迪最大的內容，但我們確實有很多內容。當我們下調銷售預測時，是因為電動車車型的每台銷售量都低於最初預期。但我們的獲利能力下降幅度較小，因為我們在那些傳統車型上的利潤率對機械木材汽車來說非常重要，而我們在這些車型上擁有非常非常強大的市場地位。

So lesser selling price, higher profitability, really in absolute dollars in many of those programs. So it's complicated as regards inventories in the US, inventories are starting to grow. What's normal? I don't think post-COVID, anyone really knows the consumer has has been trained to wait even longer for a vehicle. But at the same time, autos are I think the average auto life in North America is 12.6 years. So that's at a historic high.

因此，較低的售價，較高的盈利能力，在許多此類計劃中確實以絕對美元計算。因此，美國的庫存情況很複雜，庫存開始增加。什麼是正常的？我認為在新冠疫情之後，沒有人真正知道消費者已經接受了等待更長時間買車的訓練。但同時，汽車我認為北美的平均汽車壽命是 12.6 年。所以這是一個歷史高點。

So how that all sorts out, really at the end of the day, there's an affordability problem, buying a new vehicle is holy, obviously expensive. That's what's happening in Europe with the trade down to electrification, but with some of the Chinese upstarts is probably too strong, but it's really an affordability issue. I think that plays into our hands as well, as I said earlier, but we'll see how the whole thing unravels.

那麼，這一切是如何解決的，歸根結底，存在負擔能力問題，購買新車是神聖的，顯然很昂貴。這就是歐洲正在發生的情況，貿易涉及電氣化，但中國的一些新貴可能太強大了，但這確實是一個負擔能力問題。正如我之前所說，我認為這也對我們有利，但我們將看看整個事情如何展開。

Very good, I appreciate that. And then maybe one, that kind of dovetails into the bedding segment but I saw again, there's some metal margin compression. And just curious, kind of the dynamics there in your view, a normalization.

非常好，我很欣賞。然後也許有一個，那種與床上用品部分的燕尾榫，但我再次看到，有一些金屬邊緣壓縮。只是好奇，在你看來，這是一種常態化。

We had some really high spreads were just coming back to kind of what maybe is closer to normal? Or has there been some changes in either like the tariff protections or some of the dynamics that caused some imports to come in more than they typically would anything there for us to think about?

我們有一些非常高的利差剛剛恢復到接近正常水平？或者是否發生了一些變化，例如關稅保護或一些動態，導致一些進口量超出了我們通常考慮的範圍？

Yeah, Tyson can clean me up. I think it's just a normalization. There's no change in import protection at all. It's just the shrinking of that spread is probably more driven by demand or lack of demand domestically across all markets. Not obviously not just bedding and furniture, but this is just a normalization.

是的，泰森可以清理我。我認為這只是一種常態化。進口保護完全沒有改變。只是利差的縮小可能更多是由所有市場的國內需求或需求不足所驅動的。顯然不僅僅是床上用品和家具，但這只是一種常態化。

Yeah, I totally recall normalization and Bobby primarily talked about it. There was and at least compared to history and excessive difference between the US steel market in Europe, and we saw some of that and adjusted prices accordingly in our businesses late last year.

是的，我完全記得正常化，鮑比主要談到了它。至少與歷史相比，美國鋼鐵市場與歐洲之間存在過大的差異，我們在去年年底就看到了其中的一些情況，並相應地調整了我們的業務價格。

So it already started to think a lot of the price normalization kind of downstream through our businesses. But I totally agree with Karl, just normalization of kind of coming out of COVID and the pandemic impact.

因此，它已經開始考慮透過我們的業務實現下游價格正常化。但我完全同意卡爾的觀點，只是新冠疫情和疫情影響的正常化。

Appreciate that. And then maybe Karl one more just on the you talked a little bit on the prepared remarks, this portfolio optimization. I just kind of wanted to ask in context of the hurdle rates. Are the hurdles to kind of get over the line on doing that, given where the macro is and where some of these end markets are just kind of what's the patient levels, like how do you guys go about debating that because I do remember back, I guess this would have been in probably 13 or 14, maybe in your present it there was some good portfolio optimization to raise margins and had a nice impact on the P&L.

感謝。然後也許卡爾也談了一點關於準備好的評論，即投資組合優化。我只是想問一下最低門檻利率。考慮到宏觀情況以及其中一些終端市場的耐心程度，克服這一點的障礙是否存在，例如你們如何辯論這個問題，因為我記得，我想這可能是在13 或14 年，也許在你現在的情況下，有一些很好的投資組合優化來提高利潤率並對損益表產生了很好的影響。

Yeah, Bobby, good question. We remember how to do it? There is Ryan, Clive Walker, who runs strategy was certainly involved and at that time frame in helping through all of that. So what we're trying to do is forecast these businesses. We look at them today, but trying to forecast them five years out and from a profitability perspective, from a growth potential and from a fit to Leggett perspective, a lot of good work done.

是的，鮑比，好問題。我們還記得怎麼做嗎？負責策略的瑞安·克萊夫·沃克（Clive Walker）肯定參與了其中，並在當時幫助完成了這一切。所以我們正在嘗試做的是預測這些業務。我們今天著眼於它們，但試圖從獲利角度、成長潛力和萊格特的角度來預測五年後的情況，我們做了很多出色的工作。

I think that you should expect a smaller more focused company in the future up by our history. We don't divulge any potential divestitures until we're under an LOI. So there's more to come, but there's a lot of activity.

我認為，根據我們的歷史，你應該期待未來會有一家更小、更專注的公司。在達成意向書之前，我們不會透露任何潛在的資產剝離。所以還有更多的事情要做，但有很多活動。

Thank you. I appreciate it. Best of luck here during the process and the rest of the year.

謝謝。我很感激。祝過程中以及今年餘下的時間一切順利。

Yeah. Thank you, Bobby.

是的。謝謝你，鮑比。

Keith Hughes, Truist Securities.

基斯‧休斯 (Keith Hughes)，Truist 證券公司。

Thank you. Building on that last answer, Karl, on any portfolio moves, is that probably more likely to be seen next year or you think we could see something in the second half of this year, if in fact that occurs.

謝謝。在最後一個答案的基礎上，卡爾就任何投資組合變動表示，明年更有可能出現這種情況，或者您認為我們可能會在今年下半年看到一些情況，如果確實發生的話。

I would think probably early next year, it just takes a long time to get through some of these processes. Some of our businesses are very complex geographically, multiproduct. So yeah, I would say first half of next year.

我想可能是明年初，完成其中一些流程需要很長時間。我們的一些業務地理位置非常複雜，產品種類繁多。是的，我會說明年上半年。

And very much like the one you went in 2007. I assume everything is on the table at this point.

和你 2007 年去的很像。我想此時一切都已擺在桌面上了。

Everything is being evaluated in the prepared comments. We continue to tell you the businesses that we're going to lean into that in automotive geo. And I would say all textiles there, some alternative markets and some of our other textile businesses that have significant growth those businesses are well managed.

一切都在準備好的評論中進行評估。我們將繼續告訴您我們將重點關注汽車地理領域的企業。我想說的是，那裡的所有紡織品、一些替代市場以及我們其他一些成長顯著的紡織品企業，這些企業都管理得很好。

There are some other businesses that are core to the company that are really well managed that are good performers, great cash generators. We need those businesses to be healthy going forward. So there's a balance of all of that. Really the the screen is fit growth potential and our ability to execute in whatever those markets are.

還有一些其他業務是公司的核心業務，管理得非常好，表現良好，可以產生大量現金。我們需要這些企業健康發展。所以所有這些都是平衡的。事實上，無論這些市場是什麼，螢幕都適合成長潛力和我們的執行能力。

Okay. And on the quarter. Sorry, your question earlier, the volume was down a little bit, not that much in Furniture, Flooring and Textiles, particularly Furniture and Flooring, but the price was down a good bit if you could talk about, is that just market pressure and pricing? Or is there some kind of portfolio change that's impacting crisis? What's the dynamics there?

好的。還有季度。抱歉，您之前的問題，家具、地板和紡織品的銷量下降了一點，尤其是家具和地板，但價格下降了很多，如果您能談談的話，這只是市場壓力和定價嗎？或者是否存在某種投資組合變化正在影響危機？那裡的動態如何？

So it's an interesting question Keith, because pricing is all over the board. Generally what's happening is prices are falling with commodity cost reductions, general comment across most of the portfolio, but I do need to call out a couple of businesses, aerospace and automotive. They had a hard time passing through cost inflation post pandemic and trying to deliver to the customer.

這是一個有趣的問題，基思，因為定價是全面的。一般來說，隨著大宗商品成本的降低，價格正在下降，這是大多數投資組合的普遍評論，但我確實需要指出一些企業，航空航天和汽車。他們很難克服大流行後的成本上漲並試圖向客戶交付產品。

So it's difficult in that timeframe when they were having a hard time kind of meeting demand for them to pass through materials now that they have both of those businesses have done a better job of being able to keep up with customer demand, they've gone back kind of retrospectively and increased some prices. So we've enhanced margins in both of those two businesses. But across the company, it's generally highly correlated to commodities being softer.

因此，在那個時間段內，當他們很難滿足他們傳遞材料的需求時，這是很困難的，因為他們的這兩家企業在滿足客戶需求方面做得更好，他們已經走了回顧性地回來並提高了一些價格。因此，我們提高了這兩項業務的利潤率。但就整個公司而言，這通常與大宗商品走軟高度相關。

What's interesting is that actually that would be the phone and home furniture that what you're referring?

有趣的是，實際上這就是您所指的電話和家具？

Yeah, it's a little bit of bidding year on year.

是的，每年都有一點投標。

Little bit of texture?

有點質感？

Yeah.

是的。

Okay. Thanks very much.

好的。非常感謝。

Peter Keith, Piper Sandler.

彼得·基思，派珀·桑德勒。

Good morning, everyone and Karl, I guess from a nice to hear your voice. So I think in some ways you already answered this question to Susan's question. Am I right your areas of focus, but I wanted to look at it from the other angle as you've come in what do you think have been the biggest challenges and issues that against Leggett & Platt in recent years when you've been away from the company?

大家早安，卡爾，我想很高興聽到你的聲音。所以我認為在某些方面你已經回答了蘇珊的問題。我對您關注的領域是否正確？ 但當您進來時，我想從另一個角度來看待它，您認為近年來當您離開時，禮恩派面臨的最大挑戰和問題是什麼來自公司？

Yeah, that's an interesting question because I haven't really been away, say involved, certainly with relationships. Yeah, I think it's continuing to be transparent and having a sense of urgency and an ability to make decisions. I think those are kind of the key areas of focus, and it's a tough environment, not lane blame on anybody.

是的，這是一個有趣的問題，因為我並沒有真正離開，例如參與，當然也沒有參與人際關係。是的，我認為它會繼續保持透明，並具有緊迫感和決策能力。我認為這些是重點關注的領域，而且這是一個艱難的環境，不能把責任歸咎於任何人。

I mean, it's a tough, tough environment that our teams are operating in, sometimes it's tough to be able to kind of stand back and you'll see the the force from the trees and it so that I think that's it is as much as anything, Peter, our people have been working in a tough environment that there's no question in my mind that the bedding industry is is probably no longer in recession, but is in depression.

我的意思是，我們的團隊所處的環境非常艱難，有時很難退縮，你會看到來自樹木的力量，所以我認為這與無論如何，彼得，我們的員工一直在一個艱難的環境中工作，毫無疑問，在我看來，床上用品產業可能不再處於衰退之中，而是處於蕭條之中。

That's been unprecedented. The last three years have been a challenge with the whipsaw effect of post pandemic demand. And then the falloff right after that. So the whipsaw effect has been tough. So I think it's just dealing with the issues at hand and then trying to guide from a future perspective.

這是前所未有的。過去三年是疫情後需求的鋸齒效應帶來的挑戰。然後就是在那之後的衰退。因此，洗盤效應非常嚴重。所以我認為這只是處理當前的問題，然後嘗試從未來的角度進行指導。

Okay. And then I know people always respect your opinion on the bedding and I guess what are you seeing? I think you talked about I think it was mid single-digit unit declines. Is there Ben, that you have, I guess throughout Q2 things. Do you think you got better or did it get worse and anything you're seeing with the industry so far in Q3?

好的。然後我知道人們總是尊重您對床上用品的意見，我猜您看到了什麼？我想你談到了單位數的中位數下降。我想在第二季的整個過程中，本都有嗎？您認為第三季度您的情況是好轉了還是變得更糟了？

No, I think sequentially first quarter second, quarter was kind of more of the same. What's changed from our last call is we would have had a probably a more aggressive positive tone on units in the back half of this year. I think the industry has come to the realization that there, it's tough and it's going to continue to be tough.

不，我認為第一季第二季的情況大致相同。與我們上次電話會議相比，我們可能會在今年下半年對單位採取更積極的積極基調。我認為業界已經意識到，現在的情況很艱難，而且會繼續如此。

So nothing's really changed, we tease each other about this phrase that the industry uses about bouncing along the bottom and it kind of feels that way based on history, election years are not very favorable to the betting industry. Advertising, the cost of advertising, availability of advertising is really difficult and trying to get keep the consumers attention at a time when there are some affordability issues.

所以什麼都沒有真正改變，我們互相嘲笑這個行業使用的關於底部反彈的短語，根據歷史感覺，選舉年對博彩業不太有利。廣告、廣告成本、廣告的可用性確實很困難，在存在一些負擔能力問題的情況下，試圖吸引消費者的注意力確實很困難。

So yeah, that's why we've kind of changed our update to the back half to say that we expect full year to be soft down mid-single digits acknowledging that the comps get a little bit easier in the back half.

所以，是的，這就是為什麼我們改變了對後半段的更新，表示我們預計全年將軟化到個位數中間，承認後半段的比較會變得更容易一些。

And also, I want to ask a follow-up on that on margin. It sounds like that's seeing a little more pressure now than we thought a couple of months ago? Is there any way to quantify that, that metal margin impact to the guidance and then where is your metal margin today versus 2019?

另外，我想問關於保證金的後續情況。聽起來現在的壓力比我們幾個月前想像的還要大？有什麼方法可以量化金屬利潤率對指導的影響，然後與 2019 年相比，現在的金屬利潤率是多少？

Compared to 2019 in certainly yeah, I would say it's higher than 2019. And as regards metal margin compression included in the guidance. It's not that significant, but no, we don't the compartment analyze to that degree.

與 2019 年相比，當然是的，我想說它比 2019 年要高。至於指南中所包含的金屬利潤壓縮。這並不是那麼重要，但不，我們不會對隔間進行那種程度的分析。

Okay, fair enough. Lastly, on the automotive, so you're calling out some of the headwinds around that is disruption from Chinese entrants and I guess, various demand dynamics on that EVs. As you think about because they do seem maybe a little bit more structural in terms of investment not transitory. Do you think about those as being more challenges to sales or margins for the specialty segment or perhaps both?

好吧，很公平。最後，在汽車領域，您指出了一些不利因素，即來自中國進入者的干擾，我想，電動車的各種需求動態。正如你所想，因為它們確實在投資方面似乎更具結構性，而不是暫時性的。您認為這些對專業領域的銷售或利潤率或兩者都構成更大的挑戰嗎？

I agree that they're probably not transitory and it really does go back to core affordability, auto affordability issues. It's interesting, this is a North American statistic and remember that our automotive business is very much a global business, but small car sold at a faster rate so far this year than any time in recent history. And I think that's not a consumer preference change that's purely an affordability or lack of affordability issue.

我同意它們可能不是暫時的，它確實回到了核心的負擔能力、汽車負擔能力問題。有趣的是，這是北美的統計數據，請記住，我們的汽車業務在很大程度上是一項全球業務，但今年迄今為止小型車的銷售速度比近代歷史上的任何時候都要快。我認為這並不是消費者偏好的變化，而純粹是負擔能力或缺乏負擔能力的問題。

So it is more of a pressure on top line and bottom line for sure, our automotive teams continue to do a terrific job of executing. And as I said earlier, we're really well placed on some of those we're well placed across the whole value chain. But because of the maturity of the smaller vehicles than the kind of a lack of a I guess, the top line, is it sort of more fluently.

因此，這對營收和利潤無疑是更大的壓力，我們的汽車團隊繼續出色地執行工作。正如我之前所說，我們在整個價值鏈中的一些領域確實處於有利地位。但由於小型車輛的成熟度比那種缺乏我猜，頂線，是不是有點更流暢。

The first, I sort of the top line is going to be less, but the bottom line is on a percentage basis, absolutely in an absolute dollar basis, probably better just because of the maturity of those programs in our competitive market position with those programs.

首先，我的頂線會減少，但底線是按百分比計算的，絕對是按絕對美元計算的，可能更好，因為這些項目在我們競爭市場地位中的成熟度與這些項目。

Okay. Sounds good. Thank you very much.

好的。聽起來不錯。非常感謝。

Your welcome.

別客氣。

Thank you. The next question is a follow-up coming from Susan Maklari of Goldman Sachs.

謝謝。下一個問題是高盛 (Goldman Sachs) 的蘇珊·馬克拉里 (Susan Maklari) 提出的後續問題。

Thank you. I just have two more for you, Karl. One is --

謝謝。我還有兩份給你，卡爾。一是--

Yeah, I am trying to get Ben in this conversation.

是的，我正試圖讓本參與這次對話。

Okay. Well we can get (inaudible) one too.

好的。好吧，我們也可以獲得（聽不清楚）一個。

Good, thank you. He's anxious.

好的謝謝你。他很著急。

Okay, will definitely, I mean, there's plenty plenty we can ask. But first one of the things I want to follow up on is you mentioned the impact of the election being an election year on demand for bedding. How do you think about the health of the consumer today, I guess broadly speaking and the impact that this macro uncertainty and perhaps the increased political uncertainty too in the last couple of weeks is adding two their willingness or their ability to go out and make these bigger ticket purchases.

好吧，我的意思是，我們可以問的還有很多。但我想跟進的第一件事是你提到了選舉年對床上用品需求的影響。我想從廣義上講，您如何看待當今消費者的健康狀況，以及這種宏觀不確定性以及過去幾週可能增加的政治不確定性的影響，增加了他們外出製造這些產品的意願或能力購買更大的門票。

It's a concern that the news of yesterday on job formations is in positive, some of the beyond certainly not an economist, but some believing that we're heading into recession the health of the consumer is weak. As you know, certainly on the premium side of bedding, a lot of those purchases are financed.

令人擔憂的是，昨天關於就業形成的消息是正面的，有些人肯定不是經濟學家，但有些人認為我們正陷入衰退，消費者的健康狀況很弱。如您所知，當然，在床上用品的高端方面，許多購買都是有資金支持的。

We economists speak of the K-shape recovery and that top leg of the case seems to be softening the ultra-premium seems to, for the first time post pandemic feeling a little bit of softness that we can see as I read through some of our customers. So said differently, until the Fed makes a rate adjustment.

我們經濟學家談到 K 型復甦，情況似乎正在走軟，超保費似乎在大流行後第一次感到有點疲軟，當我閱讀我們的一些報告時，我們可以看到這一點。換句話說，直到聯準會做出利率調整。

I don't think that anything really changes that you know what drives bedding and that's household formation, household changes and consumer confidence. And none of that happens until the Fed moves.

我不認為有什麼真正改變了床上用品的驅動力，那就是家庭組成、家庭變化和消費者信心。在聯準會採取行動之前，這一切都不會發生。

Okay. And then maybe following up on that, too, you're working through this restructuring plan with a lot of macro headwinds coming at you. If the Fed does start to move in the back half of this year. How do you think about what having macro tailwinds could mean for the business? And how think about, we talked a lot about that in relation to the consumer, but could it also help some of those industrial businesses as well?

好的。然後也許跟進這一點，你正在製定這個重組計劃，同時面臨著許多宏觀阻力。如果聯準會確實在今年下半年開始採取行動。您如何看待宏觀順風對企業意味著什麼？想想看，我們談了很多與消費者相關的問題，但這也可以幫助一些工業企業嗎？

Absolutely, volumes always a good thing, that's really what's happening now and to Sam's very appropriate comments a little bit ago that you put some volume through these assets now that what kind of Tyson and the team has done in bedding.

絕對，數量總是一件好事，這確實是現在正在發生的事情，薩姆之前的非常恰當的評論是，你在這些資產上投入了一些數量，現在泰森和他的團隊在床上用品方面做了什麼。

I tell you what we all know what volume does through the spring plants, it gets really good, really, really quick and many of our businesses have the same characteristics. So and volume would be welcomed and is needed at this point?

我告訴你，我們都知道春季工廠的銷售會產生什麼作用，它變得非常好，非常非常快，而且我們的許多業務都具有相同的特徵。那麼，目前數量會受到歡迎並且是需要的嗎？

Yeah, okay. And now I will ask that question.

好的。現在我要問這個問題。

I appreciate it.

我很感激。

Okay, you actually saw a nice improvement in the working capital despite everything that's going on this quarter. Can you just talk a little bit about the sources of that and how you think about continuing to be able to get some benefits in there, even if things stay tough?

好吧，儘管本季度發生了一切，但您實際上看到了營運資金的良好改善。您能否簡單談談其來源，以及您如何看待即使情況仍然艱難，仍能繼續從中獲得一些好處？

Yeah, sure, Susan, that I think most of the benefit really comes from bringing our inventories down. We've been doing that nicely for a while now our teams are really focused on that doing a good job and it has provided some improvement.

是的，當然，蘇珊，我認為大部分好處確實來自於降低我們的庫存。我們在這方面做得很好已經有一段時間了，現在我們的團隊真正專注於做好工作，並且它已經提供了一些改進。

I think as we go through the back half of the year. We don't expect a whole lot more. We've done a good job, but I would think working capital benefits slightly. Our earnings will drive the majority of the cash flow. And we really, as we've talked about, we'll use that to help start reducing debt.

我認為，當我們度過今年下半年時。我們不期望更多。我們做得很好，但我認為營運資本略有好處。我們的收入將推動大部分現金流。正如我們所討論的，我們確實將利用它來幫助開始減少債務。

One thing I'd also I'd point out that we did reduce debt $73 million in the second quarter, which was nice. And we haven't seen the free up of the cash yet from the debt -- I'm sorry, the dividend reduction that really will start to make an impact in the third quarter, even though we declared a dividend lower in the second quarter, we paid the first quarter dividend in second quarter. So from a cash perspective, that was still a little bit higher burden, obviously.

我還想指出的一件事是，我們在第二季確實減少了 7,300 萬美元的債務，這很好。我們還沒有看到債務中的現金釋放——抱歉，股息減少確實會在第三季度開始產生影響，儘管我們宣布第二季度股息較低，我們在第二季度支付了第一季股息。因此，從現金角度來看，顯然這仍然是一個更高的負擔。

And then the last thing I'd mention is our teams have done a really great job of monetizing some of these real estate properties. So in the first half of the year, we generated $18 million proceeds from real estate properties that were not related to the real estate or I'm sorry, the restructuring project.

我要提到的最後一件事是，我們的團隊在將其中一些房地產貨幣化方面做得非常出色。因此，今年上半年，我們從與房地產或重組項目無關的房地產中獲得了 1800 萬美元的收益。

But in the back half of the year, we've seen where we can accelerate some of the restructuring related real estate properties and generate $15 million to $25 million in proceeds there. So we feel good about our cash generation and these real estate sales as we start to make progress now in the back half on that debt reduction.

但在今年下半年，我們已經看到可以加速一些與房地產重組相關的項目，並在那裡產生 1500 萬至 2500 萬美元的收益。因此，隨著我們在下半年開始在債務削減方面取得進展，我們對我們的現金產生和這些房地產銷售感到滿意。

Okay. And following up on that, you actually maintain the operating cash flow guide at $300 million to $315 million, even with taking the guide down incrementally talking about volumes being weak, all these headwinds that you're facing. Can you talk about the ability to maintain and what's going into that?

好的。在此之後，您實際上將營運現金流量指南維持在 3 億至 3.15 億美元之間，即使由於交易量疲軟以及您面臨的所有這些不利因素而逐步降低指南。您能談談維護能力以及其中的內容嗎？

Yeah, I think there's a couple of things there, and we talked about them just here recently that the ability for our businesses to really start seeing the benefit of the restructuring being able to efficiently move volume through the business, I think will be a big thing.

是的，我認為有幾件事，我們最近在這裡討論過，我們的企業能夠真正開始看到重組的好處，能夠有效地透過業務轉移銷量，我認為這將是一個很大的事情。

And then we have a really big focus on working capital because I believe we've had a good focus on that, but we'll continue to do that and we'll continue to challenge ourselves to utilize that to drive cash as well.

然後，我們非常關注營運資本，因為我相信我們已經很好地關注了這一點，但我們將繼續這樣做，我們將繼續挑戰自己，利用它來推動現金。

Okay. All right. Well, I will end it there. Thank you, everyone, for all the color today and good luck, guys.

好的。好的。好吧，我就到此結束吧。謝謝大家，今天的所有色彩，祝大家好運。

Thank you, Susan.

謝謝你，蘇珊。

Thank you. At this time, I'd like to turn the floor back over to Ms. Branscum for closing comments.

謝謝。現在，我想把發言權交還給布蘭斯坎女士以供結束發言。

Great. Thank you for joining us today and your interest of Leggett & Platt, and we'll talk to you next quarter. Have a great weekend.

偉大的。感謝您今天加入我們以及您對 Leggett & Platt 的興趣，我們將在下個季度與您交談。週末愉快。

Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.

女士們、先生們，感謝您的參與。今天的活動到此結束。此時，您可以斷開線路或登出網路廣播，享受剩下的一天。