禮恩派 (LEG) 2024 Q3 法說會逐字稿

Greetings and welcome to the Leggett & Platt third-quarter 2024 webcast and earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

歡迎參加 Leggett & Platt 2024 年第三季網路廣播與財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

Is now my pleasure to introduce Cassie Branscum, Vice President of Investor Relations. Thank you. You may begin.

現在我很高興向您介紹投資者關係副總裁 Cassie Branscum。謝謝。你可以開始了。

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

早上好，歡迎參加 Leggett & Platt 2024 年第三季財報電話會議。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；和投資者關係經理 Kolina Talbert。

The agenda for our call this morning is as follows. Karl will discuss current demand trends and provide an update on the restructuring plan and other ongoing initiatives, Ben will cover our operating results and additional financial details and address our revised 2024 outlook, and the group will answer any questions you have.

我們今天上午的電話會議議程如下。Karl 將討論當前的需求趨勢，並提供重組計劃和其他正在進行的舉措的最新信息，Ben 將介紹我們的經營業績和其他財務細節，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 restructuring update. First documents supplement the information we discuss on this call, including non-GAAP reconciliations. Remarks today concerning future expectations, events, objectives, strategies, trends or results constitute forward-looking statements.

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和重組更新。第一份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。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。

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.

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。

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.

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 Karl.

我現在將電話轉給卡爾。

Good morning and thank you for joining our call today. As we begin, I want to thank our employees for their continued hard work and dedication as we navigated a challenging macro backdrop. Our third quarter sales and earnings were below our expectations, largely due to weaker than anticipated demand in residential end markets in headwinds in Automotive, Hydraulic Cylinders and Geo Components.

早安，感謝您今天加入我們的電話會議。首先，我要感謝我們的員工在我們應對充滿挑戰的宏觀背景時持續的辛勤工作和奉獻精神。我們第三季的銷售額和收益低於我們的預期，這主要是由於汽車、液壓缸和土工零件的不利因素導致住宅終端市場的需求弱於預期。

Sluggish demand in these businesses is expected to persist through the fourth quarter and is expected to be more impactful than previously anticipated. As a result, we are reducing full year sales and earnings guidance, which Ben will detail later in the call.

這些業務的需求低迷預計將持續到第四季度，並且預計影響將比之前預期的更大。因此，我們正在降低全年銷售和盈利指導，本稍後將在電話會議中詳細說明。

Now I'd like to highlight a few of the current demand dynamics in our key end markets. The US Bedding market continues to experience negative volume comps. Although some improvement in demand has been observed during holiday sales, in between periods have been softer.

現在我想強調一下我們主要終端市場目前的一些需求動態。美國床上用品市場持續經歷負銷售比較。儘管在假日銷售期間需求有所改善，但在此期間需求卻較為疲軟。

We estimate that US mattress consumption was approximately flat in the third quarter, but domestic production was likely down high single digits. Given a more challenging macro environment and softening in consumer spending, we expect the domestic market will continue to be pressured in the fourth quarter and expect 2024, domestic units to be down mid-single digits versus last year.

我們估計第三季美國床墊消費量大致持平，但國內產量可能會出現高個位數下降。鑑於更具挑戰性的宏觀環境和消費者支出疲軟，我們預計第四季度國內市場將繼續面臨壓力，並預計到 2024 年，國內銷售量將較去年下降中個位數。

While we are encouraged to see the Fed begin a cycle of interest rate cuts. We know a series of cuts is needed to meaningfully impact housing turnover, and there will also be a lag between improvement in housing trends in an improvement in mattress demand.

雖然我們很高興看到聯準會開始降息週期。我們知道需要採取一系列削減措施才能對住房週轉率產生有意義的影響，而且住房趨勢的改善與床墊需求的改善之間也存在滯後。

We still anticipate that our 2024 Bedding Products segment volume will be down high single digits due to company-specific factors. Excluding higher trade rod sales for non-bedding applications, segment volume would be expected to be down low double digits.

我們仍然預計，由於公司特定因素，2024 年床上用品細分市場銷售量將出現高個位數下降。排除非床上用品應用貿易棒銷售的增加，該細分市場的銷售量預計將下降兩位數。

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

然而，值得注意的是，我們的 ComfortCore 和半成品的表現持續符合或優於國內床墊生產趨勢。我們正在與客戶密切合作，進行一系列產品線更新和價值工程機會。

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

轉向汽車。各個地區的市場仍然波動。在中國，跨國原始設備製造商客戶的份額正在被中國電動車製造商奪走，而我們目前在中國的電動車製造商中的代表性較少，導致產量在短時間內出現下降。在歐洲，消費者負擔能力問題導致的經濟疲軟給中國電動車製造商提供了提供成本較低的電動車的機會，從而導致產量、總量下降、產品貿易下降以及客戶專案啟動延遲。

In North America, uncertainty around EV transition time lines and consumer affordability issues is resulting in program launch delays in product trade down. Although our sales are more impacted by these factors than previously expected, our automotive team continues to realize efficiency improvements and closely managed cost resulting in improved EBIT margins.

在北美，電動車轉型時間線的不確定性和消費者的承受能力問題導致計畫啟動延遲，導致產品交易下降。儘管我們的銷售受到這些因素的影響比之前預期的更大，但我們的汽車團隊繼續實現效率提高和嚴格管理成本，從而提高息稅前利潤率。

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

最後，我們的地理組件業務在第三季持續疲軟，影響了民用建築市場和零售銷售。除了正常的季節性疲軟之外，這些趨勢預計將持續到第四季。儘管近期面臨需求挑戰，我們仍專注於加強資產負債表、提高營運效率和利潤率以及為未來獲利成長機會做好準備的措施。

I'm pleased to share that our restructuring plan remains on track in our teams have done an excellent job executing the plan. We will exit our Mexican innerspring operation by year end, which will conclude all innerspring related restructuring activity in the Bedding Products segment.

我很高興地告訴大家，我們的重組計劃仍在按計劃進行，我們的團隊在執行該計劃方面做得非常出色。我們將在年底前退出墨西哥內置彈簧業務，這將結束床上用品領域所有與內置彈簧相關的重組活動。

Within Specialty Foam, we have close to operations and expect one more consolidation to be complete by year end. Early in the fourth quarter, we closed one adjustable bed location and shifted production to a more cost advantage facility to reduce excess capacity and improve our cost structure.

在特種泡沫領域，我們的營運已接近尾聲，預計年底前將完成另一次整合。第四季初，我們關閉了一個可調式床位，並將生產轉移到更具成本優勢的設施，以減少過剩產能並改善我們的成本結構。

Restructuring initiatives in the furniture, flooring and textiles product segments are also on track. We successfully executed our restructuring activity in Home Furniture, and we expect to complete Phase 1 of our flooring products restructuring by early next year.

家具、地板和紡織品領域的重組舉措也已步入正軌。我們成功地執行了家用家具的重組活動，我們預計在明年初完成地板產品重組的第一階段。

Within Specialized Products, our Hydraulic Cylinders team is actively working through a restructuring project designed to increase profitability through manufacturing optimization and operating efficiency improvements.

在專業產品領域，我們的液壓缸團隊正在積極進行重組項目，旨在透過製造優化和營運效率提高來提高獲利能力。

Last quarter, we shared an in-depth strategic review of our portfolio was underway. We are focused on simplifying our portfolio of businesses that are the right long-term fit for Leggett & Platt. As part of this strategic review, we are currently exploring the potential sale of our Aerospace business.

上個季度，我們表示正在對我們的投資組合進行深入的策略審查。我們致力於簡化適合長期適合 Leggett & Platt 的業務組合。作為本次策略審查的一部分，我們目前正在探索出售航空航太業務的可能性。

We do not intend to comment on or provide updates regarding our strategic evaluation process unless and until we determine that further disclosures required or otherwise appropriate.

除非我們確定需要進一步揭露或以其他方式適當，否則我們無意對我們的策略評估流程發表評論或提供最新資訊。

We also continue to work through an evaluation of our general and administrative cost structure. Our G&A project team is analyzing and identifying opportunities to drive efficiencies. We have identified approximately $10 million in corporate cost savings, which are expected to be realized in 2025.

我們也繼續對我們的總體和管理成本結構進行評估。我們的 G&A 專案團隊正在分析和識別提高效率的機會。我們已經確定可以節省約 1000 萬美元的企業成本，預計將於 2025 年實現。

We continue to analyze and identify potential opportunity cities within our business unit functions. However, we had a small than those identified in our corporate functions. We remain confident in our ability to execute the restructuring plan and other operation efficiency improvements and position our company for long-term success.

我們繼續在我們的業務部門職能範圍內分析和識別潛在的機會城市。然而，我們的規模比我們公司職能中確定的要小。我們對執行重組計劃和其他營運效率改善的能力充滿信心，並使我們的公司取得長期成功。

I'll now turn the call over to Ben to review third quarter financial details in our revised outlook for the year.

我現在將把電話轉給本，以審查我們修訂後的今年展望中的第三季財務細節。

Thank you, Karl, and good morning, everyone. Third quarter sales were $1.1 billion, down 6% versus the third quarter of 2023 due to volume declines across all three segments and raw material related selling price decreases.

謝謝你，卡爾，大家早安。由於所有三個細分市場的銷量下降以及與原材料相關的售價下降，第三季銷售額為 11 億美元，較 2023 年第三季下降 6%。

Compared to third quarter 2023, sales in our Bedding Product segment decreased 8%. Third quarter sales specialized products declined 6% year over year, and sales and Furniture, Flooring and Textile Products were down 4%.

與 2023 年第三季相比，我們的寢具部門的銷售額下降了 8%。第三季專業產品銷售額年減 6%，家具、地板和紡織品銷售額下降 4%。

Third quarter EBIT was $78 million and adjusted EBIT was $76 million, down $10 million versus third quarter 2023, primarily due to unfavorable product mix in Bedding Products, lower volume, metal margin compression in higher bad debt reserves, partially offset by lower amortization expense, operational efficiency improvements and restructuring benefit.

第三季息稅前利潤為7,800 萬美元，調整後息稅前利潤為7,600 萬美元，比2023 年第三季下降1,000 萬美元，主要是因為床上用品產品組合不利、銷售下降、壞帳準備金較高的金屬利潤率壓縮，部分被攤銷費用降低所抵消，營運效率提高和重組效益。

Despite weaker than expected results, adjusted EBIT margin improved by 60 basis points sequentially this quarter. Third quarter earnings per share was $0.33. On an adjusted basis, third quarter EPS was $0.32 and 11% decrease versus third quarter 2023 adjusted EPS of $0.36.

儘管業績弱於預期，但本季調整後的息稅前利潤率較上季提高了 60 個基點。第三季每股收益為 0.33 美元。調整後第三季每股收益為 0.32 美元，與 2023 年第三季調整後每股收益 0.36 美元相比下降 11%。

Cash generation remains a sharp focus on long-term priorities for use of cash are funding organic growth, funding strategic acquisitions and returning cash to shareholders through dividends and share repurchases. However, in the near term, we are prioritizing debt reduction while continuing to fund organic growth.

現金產生仍然是長期重點關注的焦點，現金使用的優先事項是為有機成長提供資金、為策略性收購提供資金以及透過股息和股票回購向股東返還現金。然而，短期內，我們將優先考慮削減債務，同時繼續為有機成長提供資金。

In the third quarter, operating cash flow was $95 million, a decrease of $48 million versus the third quarter 2023. This decrease was primarily driven by less benefit from working capital and lower earnings.

第三季營運現金流為 9,500 萬美元，比 2023 年第三季減少 4,800 萬美元。這一下降主要是由於營運資本利得減少和收益下降所致。

We ended the quarter with adjusted working capital as a percentage of annualized sales of 14.5%, an increase of 30 basis points versus third quarter 2023.

截至本季末，調整後營運資本佔年化銷售額的百分比為 14.5%，比 2023 年第三季增加了 30 個基點。

Cash from operations reasons is now expected to be approximately $300 million in 2024, versus our prior guidance of $300 million to $350 million. In the third quarter, we made progress on debt reduction as planned, reducing total debt by $124 million to $1.9 billion, which includes $84 million of commercial paper outstanding.

目前預計 2024 年營運產生的現金約為 3 億美元，而我們先前的指引為 3 億至 3.5 億美元。第三季度，我們在債務削減方面按計劃取得了進展，債務總額減少了1.24億美元，達到19億美元，其中包括未償商業票據8,400萬美元。

Additionally, net debt to trailing 12 month adjusted EBITDA decreased to 3.78 times at quarter end. We expect to make further progress toward our long-term leverage ratio target of two times in the fourth quarter.

此外，截至季末，淨債務與過去 12 個月調整後 EBITDA 比率下降至 3.78 倍。我們預計第四季將在實現兩倍的長期槓桿率目標方面取得進一步進展。

As a reminder, cash previously used for the dividend along with proceeds from real estate sales and any potential divestitures will be used to accelerate debt reduction. We still expect to predominantly utilize our commercial paper program to repay $300 million of notes maturing in November.

提醒一下，先前用於股息的現金以及房地產銷售和任何潛在資產剝離的收益將用於加速債務削減。我們仍預計主要利用我們的商業票據計劃來償還 11 月到期的 3 億美元票據。

Total liquidity was $748 million at September 30, comprised of $277 million of cash on hand and $471 million in capacity remaining under our revolving credit facility.

截至 9 月 30 日，流動性總額為 7.48 億美元，其中包括 2.77 億美元的手頭現金和 4.71 億美元的循環信貸額度剩餘能力。

Structuring costs during the quarter were $12 million, comprised of $11 million in cash costs and $1 million in non-cash costs. The plan remains on track from a cost perspective and there are no changes to our total cost estimates or timing of costs.

本季的結構成本為 1,200 萬美元，其中包括 1,100 萬美元的現金成本和 100 萬美元的非現金成本。從成本角度來看，該計劃仍處於正軌，我們的總成本估算或成本時間安排沒有變化。

In the third quarter, we realized $6 million of EBIT benefit related to the restructuring plan and still expect approximately $10 million to $15 million of EBIT benefit to be realized in 2024. We now expect the total annualized EBIT benefit of $50 million to $60 million after initiatives are fully implemented in late 2025 versus our prior estimate of $40 million to $50 million due to the additional $10 million expected from our G&A initiatives.

第三季度，我們實現了與重組計劃相關的 600 萬美元的息稅前利潤，並且仍然預計 2024 年將實現約 1000 萬至 1500 萬美元的息稅前利潤。現在，我們預計這些計劃在2025 年底全面實施後，年化息稅前利潤總額將達到5000 萬至6000 萬美元，而我們之前的估計為4000 萬至5000 萬美元，因為我們的G&A 計劃預計會額外增加1000 萬美元。

We realized$4 million of restructuring related sales attrition in the third quarter and now expect approximately $15 million of sales attrition in 2024 versus our prior estimate of $25 million. Total sales attrition on an annualized run rate basis once all initiatives are fully implemented in late 2025 is still expected to be a bit approximately $80 million.

我們在第三季實現了 400 萬美元的重組相關銷售損耗，現在預計 2024 年的銷售損耗約為 1500 萬美元，而我們先前的估計為 2500 萬美元。一旦所有措施在 2025 年底全面實施，按年化運行率計算的總銷售損耗預計仍約為 8,000 萬美元。

In the third quarter, we realized $17 million in cash proceeds from sale of real estate associated with the plan. We now expect approximately $20 million in cash proceeds from restructuring related real estate in 2024 versus our prior estimate of $15 million to $25 million.

第三季度，我們透過出售與該計劃相關的房地產獲得了 1700 萬美元的現金收益。我們現在預計 2024 年重組相關房地產將帶來約 2000 萬美元的現金收益，而我們先前的估計為 1500 萬至 2500 萬美元。

An additional $40 million to $60 million in proceeds is expect in 2025 when the majority of sales are anticipated to be complete. Our expectation of $60 million to $80 million in total restructuring related real estate proceeds remains unchanged.

預計到 2025 年，大部分銷售預計將完成，屆時將額外獲得 4,000 萬至 6,000 萬美元的收益。我們對重組相關房地產收益總額 6,000 萬至 8,000 萬美元的預期保持不變。

We are lowering our 2024, sales and EPS guidance as we anticipate weaker demand trends to continue into the fourth quarter, particularly within our Specialized Products and Furniture, Flooring and Textile Products segment's. 2024 sales are now expected to be $4.3 million to $4.4 billion were down 7% to 9% versus 2023 compared to our prior guidance of $4.3 million to $4.5 billion.

我們正在降低 2024 年銷售額和每股收益指引，因為我們預計需求疲軟趨勢將持續到第四季度，特別是在我們的專業產品以及家具、地板和紡織產品領域。目前預計 2024 年銷售額為 430 萬美元至 44 億美元，與 2023 年相比將下降 7% 至 9%，而我們先前的指引為 430 萬美元至 45 億美元。

Volume is now expected to be down mid-single digits, with volume at the midpoint down high single digits in Bedding Products, down mid-single digits in specialized products versus prior guidance of flat volume and down mid-single digits in Furniture, Flooring and Textile Products versus prior guidance of down low single digits.

目前，預計銷售量將下降中個位數，其中床上用品的中點銷售量將下降高個位數，特種產品的銷售量將下降中個位數，而先前的指導則為家具、地板和地板產品的銷售量持平，並且將下降中個位數。

Deflation and currency combined are expected to reduce sales low single digits. Full year adjusted earnings per share are expected to be $1.10 versus our prior guidance of $1.10 to $1.25. As a result, our 2024 full year adjusted EBIT margin range is expected to be 6.0% to 6.4% versus our prior guidance of 6.5% to 6.9%.

通貨緊縮和貨幣匯率的共同作用預計將使銷售額減少到低個位數。全年調整後每股收益預計為 1.10 美元，而我們先前的指引為 1.10 美元至 1.25 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 6.0% 至 6.4%，而我們先前的指引為 6.5% 至 6.9%。

In closing, I would like to thank our employees for their significant contributions. Our employees are actively driving positive change across each of our businesses, reflecting our dedication to improve profitability, and we are committed to creating long-term value for our shareholders.

最後，我要感謝我們的員工所做的重大貢獻。我們的員工積極推動每項業務的積極變革，體現了我們致力於提高獲利能力，並致力於為股東創造長期價值。

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. Operators are ready to begin Q&A.

謝謝你，本。操作員已準備好開始問答。

(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。

Good morning, Susan.

早安，蘇珊。

My first question of in Bedding. One of the things that you noticed was that unfavorable mix in terms of both the sales and the margins, just given the steel rod and what's coming through there.

我的第一個問題是寢具。您注意到的一件事是，僅考慮到鋼棒和那裡的情況，就銷售額和利潤率而言，不利的組合。

Can you talk a little bit about that mix shift and what it implies for profitability as we think about the outlook in the forward quarters perhaps?

當我們考慮未來幾季的前景時，您能否談談這種混合轉變以及它對獲利能力的影響？

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

是的，蘇珊很高興。保持棒磨機滿載非常重要。但是泰森，如果你不介意的話，為什麼不為蘇珊透露一些細節呢？

Yeah sure, thanks. Good morning Susan. You're right. Our volume in Bedding down just 3% year over year, but in our core products, it was down more than that. So filling in with the mix of trade rod and some other products with ECS that offset some of those declines.

是的，當然，謝謝。早安，蘇珊。你說得對。我們的床上用品銷售量僅年減 3%，但我們的核心產品銷售下降幅度更大。因此，用 ECS 混合貿易棒和其他一些產品來彌補部分下降。

But going forward, we do expect a higher mix of trade rod and wire tons. And you remember that the trade market is much more low carbon that high carbons, what you what we use internally. And while those margins are lower, they are important, Karl said it's important for us just from an operating perspective to operate the mill as we possibly can.

但展望未來，我們確實預期棒材和線材的貿易噸數會更高。你還記得貿易市場的低碳性比高碳性高很多，你就是我們內部使用的東西。儘管這些利潤率較低，但它們很重要，卡爾說，從營運角度來看，盡可能運作工廠對我們來說很重要。

It helps us lower or at least maintain our scrap costs. It also helps us maintain or lower conversion costs, which is really critical.

它幫助我們降低或至少維持廢品成本。它還可以幫助我們維持或降低轉換成本，這非常重要。

And also, it's a really skilled workforce. So maintaining our workforce and running the mill as full as we can is a really important thing for us. But just the reality of where we see both the long term decline of semi-flex or grid box springs, the decontenting or this lower material usage within mattress products and also just imported finished mattresses in the US is this a reality for us in running the mill now.

而且，這是一支非常熟練的勞動力隊伍。因此，維持我們的員工隊伍並盡可能滿員地運作工廠對我們來說非常重要。但我們看到半柔性或網格彈簧的長期衰退、床墊產品中的去飽和或材料使用量的減少以及美國剛剛進口的成品床墊的現實，對我們來說是一個現實。

So that will be a long-term expectation of ours that trade rod mix will be part of our business. Longer term volume remains the number one headwind for us in terms of margin and recovery of our restructuring plan and operating efficiency improvements will certainly help. But on the flip side, the lower mix or margin from the trade rod will be negative or takeaway from that.

因此，我們的長期期望是，貿易棒組合將成為我們業務的一部分。就利潤率而言，長期銷售仍然是我們的第一大阻力，重組計畫的恢復和營運效率的提高肯定會有所幫助。但另一方面，貿易桿的較低組合或利潤將是負面的或從中消失。

Okay. That's great color. Thank you, Tyson. And then shifting to Auto. Karl, you mentioned some of those bigger moves that are coming through in that business that are reflected in the results. As you think about your expectations for new programs this year, how has that shifted given what's going on in the broader industry?

好的。那顏色真棒。謝謝你，泰森。然後切換到自動。卡爾，您提到了該業務中正在發生的一些更大的舉措，這些舉措反映在結果中。當您思考今年新項目的期望時，考慮到更廣泛的行業正在發生的情況，這種期望發生了怎樣的變化？

And can you talk a bit about some of the company's specific efforts that are also coming through in that business?

您能否談談公司在該業務中所做的一些具體努力？

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

是的，蘇珊，謝謝你。嗯，正如我在準備好的發言中所說，全球汽車業務不斷變化，並且因地區而異。換句話說，北美正在發生的會減緩電動車普及的情況與中國發生的情況有很大不同。歐洲在成本和承受能力方面有完全不同的問題。

So there has been delay in the program starts. That's not all bad because we have a lot of legacy programs that we're running out. There very profitable programs, our teams can focus on them. The challenge is kind of the stop-start nature of things and the uncertainty.

所以程式啟動出現了延遲。這並非全然是壞事，因為我們有許多遺留程序即將耗盡。有非常有利可圖的項目，我們的團隊可以專注於它們。挑戰在於事物的停停性質和不確定性。

But in terms of actions that we are taking, Sam Smith has done a wonderful job of helping me oversee the Specialized Products segment. So Sam, if you don't mind, will you kind of detail those items for Susan and clean up any of my comments, if you would.

但就我們正在採取的行動而言，薩姆史密斯在幫助我監督專業產品領域方面做得非常出色。所以山姆，如果你不介意的話，請你為蘇珊詳細介紹這些項目，並清理我的任何評論（如果你願意的話）。

Yes. Sure, Karl. Thanks. And the word you used in flux are definitely the right words, I think. And Susan, if you go back to the beginning of the year, our assumptions were that the underlying business the programs that we had were really going to be flat coming into 2024. And that our volume growth would come from these new program launches.

是的。當然，卡爾。謝謝。我認為你在 Flux 中使用的單字絕對是正確的單字。蘇珊，如果你回到今年年初，我們的假設是，我們現有計劃的基礎業務到 2024 年確實會持平。我們的銷售成長將來自這些新計劃的推出。

And Karl talked about the tremendous amount of change has impacted the business across all the regions in the single biggest impact to our business from a top-line standpoint has been that those new programs just haven't launched.

卡爾談到，巨大的變化已經影響了所有地區的業務，從頂線的角度來看，對我們業務的最大影響是這些新計劃尚未啟動。

He mentioned the ICE EV transition and how it's been impactful across all the different regions and in different ways across each region. Most of our customers launch expectations really changed in one way or another. And many of those programs that we won and then we were going to start up this year, they've really been delayed or some even pushed out with no clear start date yet.

他提到了 ICE EV 轉型以及它如何對所有不同地區以及每個地區以不同方式產生影響。我們大多數客戶的發布期望確實以某種方式發生了變化。我們贏得了許多項目，然後我們將在今年啟動，但它們確實被推遲了，有些甚至被推遲了，但還沒有明確的啟動日期。

So these program delays account for about 40% of where we thought our top line would be at the beginning of the year versus where we see it be it now. The other 60% come from a variety of reasons that Karl has already mentioned at a high level.

因此，這些項目的延遲約占我們年初預計收入與現在預計收入的 40%。另外60%來自卡爾已經在高層提到的各種原因。

So I mentioned that at the beginning of the year, the 2024 major market production forecasts were supposed to be relatively flat year over year. And what's happened is that since the middle of this year, IHS' forecast has dropped a little bit each month.

所以我在年初提到，2024年主要市場產量預測應該是較去年同期相對持平。實際情況是，自今年年中以來，IHS 的預測每個月都略有下降。

So now they're major market October 2024 forecast, excluding Russia, is about 2.5% lower than it was a year ago. And that drops significant to our business and it's being driven by the difficulties they are facing many of the major multinational OEMs that I'm sure everyone's read about.

因此，現在他們對主要市場 2024 年 10 月的預測（不包括俄羅斯）比一年前低約 2.5%。這對我們的業務來說意義重大，這是由許多主要跨國原始設備製造商面臨的困難所推動的，我相信每個人都讀過這些困難。

On top of that, affordability is also an issue. Consumers are looking for ways to save a little bit of money. So product trade downs are impacting our top line. Now, product write-downs are not a bad thing for us. Let's say, a manufacturer's, which is from a high-end massage system to a pneumatic lumber or from a pneumatic loan borrower to a mechanical lumber.

除此之外，負擔能力也是一個問題。消費者正在尋找節省一點錢的方法。因此，產品貿易下降正在影響我們的營收。現在，產品減記對我們來說並不是一件壞事。比方說，製造商的，從高端按摩系統到氣動木材或從氣動貸款借款人到機械木材。

They say some money, and they can pass that on to consumers, but we still keep the volume. So it drops top line a little bit, but we make a profit regardless of the product choice.

他們說一些錢，他們可以將其轉嫁給消費者，但我們仍然保留數量。因此，它的收入略有下降，但無論產品選擇如何，我們都會獲利。

And finally, inventories going up. We follow the Automotive News, which is the trade publication. And a few weeks ago, they reported that US car and light truck inventories up about 570,000 units year over year, and that translates going from about 60 days of sales a year ago to 80 days now.

最後，庫存上升。我們關注產業出版物《汽車新聞》。幾週前，他們報告稱，美國汽車和輕型卡車庫存比去年同期增加約 57 萬輛，這意味著銷售時間從一年前的約 60 天減少到現在的 80 天。

So we think that the inventory growth may also impact us as we get into the last few months of the year. So that kind of sums up the volume impacting.

因此，我們認為，進入今年最後幾個月，庫存成長也可能影響我們。這就是影響量的總結。

I wounder, your question about what are the specific efforts that we've been taken to kind of mitigate this volume pressure. So I'll say that we're really proud of the hard work that the Automotive team have been doing all year long. They've pulled every lever that they possibly can, and we're aligned in our variable cost structure to be in line with demand and to be sustainable over time.

我更想問的是，你的問題是我們為減輕這種數量壓力而採取了哪些具體措施。所以我想說，我們對汽車團隊一整年所做的辛勤工作感到非常自豪。他們已經竭盡全力，我們調整了可變成本結構，以符合需求並隨著時間的推移保持永續發展。

So just a few things they've done. They've resized the headcount across the business across all the regions. They've done salaried direct and indirect focused into using automation and robotics to further reduce labor costs, got several projects are now going well.

他們所做的只是一些事情。他們調整了所有地區的業務人員規模。他們直接和間接地專注於使用自動化和機器人技術來進一步降低勞動成本，目前有幾個項目進展順利。

They're moving programs from across our footprint to get them closer to the end customer. Some shipping costs and improve operational efficiencies. We've moved out of several outside warehouses while resizing and reshaping our inventory so that we can eliminate premium freight that hurt us in the past.

他們正在將項目從我們的足跡中轉移出來，以使它們更接近最終客戶。一些運輸成本並提高營運效率。我們已經搬出幾個外部倉庫，同時調整和重塑我們的庫存，以便我們可以消除過去對我們造成傷害的溢價運費。

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

我們非常注重節省原料成本。在某些情況下，我們會向需要節省費用的供應商提供資源。團隊繼續進行日常的 VA/VE 工作，以實現盈利，為盈利提供資金。

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

因此，儘管我們面臨數量壓力，但所有這些努力都對我們保持和提高利潤的能力產生了非常積極的影響。我認為他們為我們的未來做好了良好的準備。

That is great color Sam. Thank you. And thank you for all that detail. I just have two more quick ones, maybe for Ben. The first is Ben, when we think about the CapEx guide that you've laid out for the full year relative to what you have done in the in the first three quarters, it would imply that there's about $40 million more spend coming during the fourth quarter.

山姆的顏色真棒。謝謝。感謝您提供的所有細節。我還有兩個快速的，也許是給本的。The first is Ben, when we think about the CapEx guide that you've laid out for the full year relative to what you have done in the in the first three quarters, it would imply that there's about $40 million more spend coming during the fourth四分之一.

Can you talk through what some of those projects are in how we should think about the timing of that?

您能否談談其中一些項目的內容以及我們應該如何考慮其時間表？

Yeah, good morning, Susan, and thanks for the question. And yes, you're right, we've spent about $60 million year to date, which would imply $40 million in the fourth quarter, which is a pretty heavy dose compared to what we've done so far.

是的，早安，蘇珊，謝謝你的提問。是的，你是對的，我們今年迄今為止已經花費了約 6000 萬美元，這意味著第四季度將花費 4000 萬美元，與我們迄今為止所做的相比，這是一個相當大的劑量。

But these are things that we see right in front of us that we feel are very likely. And the first one I had mentioned is around rod mill and just the regular maintenance that we typically do this time of year. So that's critical work that we'll be doing, and we know that's ongoing.

但這些都是我們眼前所見、我們認為很有可能發生的事。我提到的第一個是關於棒磨機以及我們通常每年這個時候進行的定期維護。因此，這是我們將要做的關鍵工作，我們知道這項工作正在持續進行。

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

同樣在床上用品方面，我們還有一些新計劃和增長計劃以及一些正在進行中的效率項目，我們正準備啟動。事實上，其中一些已經開始了。所以這確實是正面的。

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

然後我還要說，儘管卡爾和薩姆在汽車方面談到了一些挑戰，但我們確實在第四季度推出了一些新計劃，並將在這方面支出一些資本支出。

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

所以這是各種各樣的事情，但第四季度的劑量更大。但我們覺得這確實是一些好事。也許我會請泰森加入進來，對我們床上用品的一些新舉措進行更多的介紹，這些舉措非常令人興奮。

Yeah, they both relate to spring. I mean, you mentioned that the normal shutdown, we take a Sterling is normal maintenance capital is required, but the other projects or return based. And so we do have a really important initiative for both one of our customers and also for us a product line refreshing.

是的，它們都與春天有關。我的意思是，你提到正常停工，我們拿英鎊是正常維修所需的資金，但其他項目還是以回報為主。因此，我們確實為我們的客戶和我們的產品線帶來了一項非常重要的措施。

And it does require capital spending for equipment for us to have to manufacture the product that's required. And I will be rolling out in the early part of next year, but the capital spend is taking place in fourth quarter. So that's a really important thing for both the customer and us.

它確實需要設備的資本支出，以便我們必須製造所需的產品。我將在明年初推出，但資本支出將在第四季進行。所以這對客戶和我們來說都是非常重要的事情。

And then also, we have additional equipment spend also US spring to help with manufacturing efficiency, both with material and labor content. So that will be also a good return projects for us, both in 2025 and move forward.

此外，我們還在美國春季投入了額外的設備，以幫助提高材料和勞動力方面的製造效率。因此，這對我們來說也是一個很好的回報項目，無論是在 2025 年還是未來。

Yeah, thanks Ty. Good investments, for sure.

是的，謝謝泰。當然是好的投資。

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

好的。正確的。謝謝你。然後是最後一位本。當我們思考今年迄今為止的情況時，您能否向我們介紹今年每個細分市場的利潤率預期？相對於先前的指南，您會注意到哪些變化？

Yeah, sure thanks, Susan, happy to do it. Well let's start with Bedding. Compared to what we thought before, we see margins now down about 200 basis points. And that's largely an impact from unfavorable sales mix that we talked about earlier.

是的，當然謝謝，蘇珊，很高興這樣做。好吧，讓我們從床上用品開始。與我們先前的預期相比，我們現在的利潤率下降了約 200 個基點。這很大程度上是我們之前討論過的不利銷售組合的影響。

Our specialized products basis, we would expect margins to be down slightly. And then on the Furniture, Flooring and Textile side, we expect those margins to be flat.

根據我們的專業產品，我們預計利潤率將略有下降。然後在家具、地板和紡織品方面，我們預計這些利潤率將持平。

Thank you very much. I'll pass it along. Thanks for the color, guys.

非常感謝。我會把它傳遞下去。謝謝你們的顏色。

Thank you, Susan.

謝謝你，蘇珊。

Bobby Griffin, Raymond James.

鮑比·格里芬、雷蒙德·詹姆斯。

Good morning everybody. Thanks for taking my questions. The first thing I want to chat on Karl, maybe just the comments on 3Q Bedding consumption being flat year over year. That I understand the mix between domestic and imports was move those numbers around some.

大家早安。感謝您回答我的問題。我想聊的第一件事是Karl，也許只是對第三季床上用品消費量同比持平的評論。據我了解，國內和進口之間的混合使這些數字發生了一些變化。

But I guess the overall flat surprised me a little. Do you believe that system function of a flush of imports coming into the market are kind of what do you think's driving that? Because I guess the flat to me in today's macro was a little bit better just from a pure consumption standpoint.

但我想整個公寓讓我有點驚訝。您認為大量進口商品進入市場的系統功能是推動這一趨勢的原因嗎？因為我想，從純粹消費的角度來看，今天的宏觀情勢對我來說要好一些。

Yeah, Bobby, thanks for the question. I remember it's off a relatively easy comp in 3Q '23. The imports have slowed. But as we had said previously, there was a significant amount of imports that came in right before the duties were levied and read we believe that those are unwinding.

是的，鮑比，謝謝你的提問。我記得 23 年第三季的比賽相對簡單。進口放緩。但正如我們之前所說，在徵收關稅之前有大量進口商品進入，我們相信這些進口商品正在解除。

But Tyson, how else would you answer that question?

但是泰森，你還能怎麼回答這個問題呢？

Sure, thanks and good morning Bobby. You got the right Karl. We did see the significant ramp up late last year with the imports coming in ahead of the duties and then they slowed in the first and second quarter. But there was a pretty significant overhang for what came in at the end of last year.

當然，謝謝，早安，鮑比。你找對了卡爾。我們確實看到去年年底進口量在關稅之前大幅增加，然後在第一季和第二季放緩。但與去年年底的情況相比，存在相當大的懸而未決的情況。

We did see some incremental growth in inflated imports into the third quarter versus second quarter, but still not nearly to the levels that we saw last year.

我們確實看到第三季進口量較第二季有所增量，但仍低於去年的水平。

But really, Bobby, I just kind of looking at some of the channel information that we review and especially on some of the e-com channels, we did see quite a lot of activity in the third quarter. And so that's where we get to overall flat, but much slower and softer for our domestic production and consumption.

但實際上，鮑比，我只是查看了我們審查的一些渠道信息，特別是在一些電子商務渠道上，我們確實在第三季度看到了相當多的活動。因此，我們的國內生產和消費總體上持平，但速度更慢、更疲軟。

Understand. That's helpful. And then Tyson, have you heard anything interesting from your customers on just how they're behaving during these next couple of weeks for the election? Have they pullback on ad spend, just because of the crowd out effect?

理解。這很有幫助。然後，泰森，您是否從您的客戶那裡聽到了有關他們在接下來幾週的選舉期間表現如何的有趣信息？他們是否會因為擠出效應而縮減廣告支出？

Or anything interesting just flowed through the channel there to help us understand really kind of the two, three-week impact here?

或者有什麼有趣的事情透過那裡的管道流動來幫助我們真正了解這裡兩三週的影響？

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

當然，謝謝鮑比。事實上，剛進入十月，情況就已經很疲軟了。我認為這是為了你所說的。我的意思是，這總是被排擠的預期，更高的廣告成本，而且隨著我們接近選舉，通常也會分散消費者的注意力。

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

因此，我們肯定會認為這是一種影響，而且我們的客戶也在關注第四季度的庫存。但整體而言，只是預期第四季會出現正常的季節性模式。

Perfect. And then on Specialized Products, I understand you guys are in the process of seeing what you can get for Aerospace. So don't expect you to kind of comment on pure profitability. But could you rank order the three businesses in that segment in terms of EBITDA margins, of which one is the strongest to the lowest?

完美的。然後在專業產品方面，我知道你們正在了解可以為航空航天帶來什麼。因此，不要指望您會對純粹的盈利能力發表評論。但您能否按照 EBITDA 利潤率對該細分市場的三項業務進行排序，其中哪一項從最強到最低？

And I have a feeling Hydraulic Cylinders is roughly around breakeven in my guess, so that would be at the bottom. But just, any color on how Aerospace stacks up versus Auto would be helpful for us running some analysis on what potentially it could be worth.

我有一種感覺，據我猜測，液壓缸大致處於盈虧平衡點，所以這將位於底部。但只是，任何關於航空航天與汽車相比的顏色都有助於我們對其潛在價值進行一些分析。

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

這是有趣的方法，鮑比。我可以想像卡西會感到緊張，但我要告訴你答案是汽車、航空航太、液壓。

Thank you. I learned from the master on how to try to fit those questions in front the farmer guy work for.

謝謝。我從大師那裡學到如何嘗試解決農民工作中遇到的這些問題。

You absolutely did. And actually I do want to digress for a second. Bobby, you made reference to him. Budd Bugatch was very much a friend of Leggett & Platt covered us for 35 years and we missed Budd. And then thank you.

你絕對做到了。事實上我確實想離題一下。鮑比，你提到了他。巴德·布加奇 (Budd Bugatch) 是 Leggett & Platt 的摯友，為我們提供了 35 年的報道，我們很想念巴德。然後謝謝你。

I kind of feel a little bit of a Budd in you every time you ask a question, and he would be pleased. That was masterful, the way you slipped that in.

每次你問問題時，我都會覺得你有點像巴德，他會很高興。你把它塞進去的方式太巧妙了。

I appreciate it Karl. Thank you. Kind words. Great analyst, even better human, I always say. So absolutely he would like that question. I guess lastly for me, just a question for Ben. Great to see the debt pay down here in the quarter.

我很欣賞卡爾。謝謝。善意的話。我總是說，偉大的分析師，甚至更好的人。所以他絕對會喜歡這個問題。我想最後對我來說，只是問本的一個問題。很高興看到本季的債務得到償還。

Just as we think further out and you got some wins of cash coming into the business, what's the interest savings on, say $100 million of debt paydown and we can run than then in our models?

正如我們進一步思考，您在業務中獲得了一些現金收益，那麼節省的利息是什麼，比如說償還 1 億美元的債務，我們可以在我們的模型中運行嗎？

Thanks, Bobby, for the question. As we kind of think about it looking forward, we'll pay off the bonds here in a few weeks with commercial paper. So that really will be the deleveraging path is reducing our commercial paper.

謝謝鮑比的提問。當我們展望未來時，我們將在幾週內用商業票據償還這裡的債券。因此，真正的去槓桿化途徑就是減少我們的商業票據。

So think about $5 million reduction for every $100 million in debt, I'm sorry, $5 million in expense going down for every $100 million that we reduced.

因此，想想每減少 1 億美元的債務就可以減少 500 萬美元，抱歉，我們每減少 1 億美元就可以減少 500 萬美元的費用。

Perfect. Very helpful on. Congrats on the early progress within the restructuring. And best of luck here in 4Q.

完美的。非常有幫助。祝賀重組取得早期進展。祝第四季好運。

Thank you, Bobby.

謝謝你，鮑比。

(Operator instructions)

（操作員說明）

Peter Keith, Piper Sandler.

彼得·基思，派珀·桑德勒。

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

大家早安。您還沒有討論過的一個類別是家用家具，聽起來確實是指南的一部分。我想我有點困惑。我想你談到了

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

地理組件，但您的家用家具在銷售和銷量方面確實出現了相當顯著的連續下降。我想知道這是行業背景還是公司特定的東西？

Good morning, Peter, and thanks for the question. It is absolutely -- your observations is right first off, and it is industry. The Home Furniture industry is actually probably softer than Bedding, is that's possible. That industry has been terribly disrupted by retailer bankruptcies.

早安，彼得，謝謝你的提問。絕對是——你的觀察首先是正確的，而且這就是產業。家居家具行業實際上可能比床上用品行業更柔軟，這可能嗎？該行業因零售商破產而受到嚴重破壞。

The Bedding industry has been impacted to some degree, but certainly Home Furniture. And it's been challenged. The consumer has some of the same challenges. But Sam, you know that's your home. Why don't you plow into Peter's question, if you don't mind?

床上用品行業受到了一定程度的影響，但家用家具肯定受到了影響。並且它受到了挑戰。消費者也面臨一些相同的挑戰。但是山姆，你知道那是你的家。如果你不介意的話，為什麼不深入探討彼得的問題呢？

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

當然，卡爾。謝謝你的提問，彼得。然而卡爾提到的零售業破產帶來了巨大的影響。特別是在這些價位上，因為我們的一些國內客戶以及我們的一些亞洲客戶都為它們提供服務。所以這在本季產生了很大的影響。

I'd say the next factor is more of a historical perspective and kind of a comp issue, Peter. You know, this big industry-wide slowdown started back in 2022. And in our business, especially our business in Asia was impacted first as retailers right-size their inventories from 2022 right up through the middle of 2023.

我想說下一個因素更多的是歷史視角和補償問題，彼得。要知道，整個產業的大幅放緩早在 2022 年就開始了。在我們的業務中，尤其是我們在亞洲的業務首先受到影響，因為零售商從 2022 年到 2023 年中期調整庫存規模。

Now by Q3 last year, those retail inventories, especially at the lower price points, were a lot healthier. So what happened in Q3 of last year, retailers started ordering again and we started getting quite a few more orders in China than we guided for almost a year. So our Q3 China volumes, we're actually fairly decent last year.

現在到去年第三季度，這些零售庫存，尤其是在較低價格點上，健康得多。去年第三季發生的情況是，零售商再次開始訂購，我們在中國收到的訂單數量開始比我們近一年來的預期多得多。所以我們去年第三季的中國銷售其實相當不錯。

Now this year, the industry's continued to soften. As we've talked about, supply chain is caught up and there's just simply fewer orders in the chain that are coming our way than they were last year. So that comp issues have been a factor. And there's another smaller thing that I want to make sure we cover.

今年以來，該行業持續疲軟。正如我們所討論的，供應鏈陷入困境，供應鏈中的訂單比去年少了。因此，補償問題一直是個因素。我想確保我們涵蓋另一件較小的事情。

At the beginning of this year, we moved some of our production from the US to Asia and to a few of our other US locations. And some of our larger customers who were ordering out of that location started ordering really heavy in the first half of the year to make sure they have plenty of stock.

今年年初，我們將部分生產從美國轉移到亞洲以及美國的其他一些地點。我們的一些從該地點訂購的較大客戶在今年上半年開始大量訂購，以確保他們有充足的庫存。

So we had a really strong Q2 from a volume standpoint. By the beginning of the third quarter this year, they realized that their warehouses were packed and they really held off ordering any new product until late in the quarter.

因此，從銷售的角度來看，我們的第二季非常強勁。到今年第三季初，他們意識到倉庫已經擠滿了人，他們確實推遲了訂購任何新產品，直到本季末。

So that was another factor. And those folks are ordering again, and we'll see more consistency going through Q4 from them.

這是另一個因素。這些人再次訂購，我們將在第四季度看到他們更加一致。

Okay. That's very helpful. I do agree, the furniture industry backup seems challenging and interesting comments on the retail bankruptcies. I did want to pivot back to the steel rod business and then the reverse side where furniture slowed steel rod just accelerated massively.

好的。這非常有幫助。我確實同意，家具行業的支持似乎對零售破產具有挑戰性和有趣的評論。我確實想回到鋼棒業務，然後家具減慢鋼棒業務的相反方向卻大幅加速。

And it feels like there's a strategic shift here that might stick around. So, the sales were up a lot. You say you want to run full capacity, still some metal margin are you cutting prices a little bit in order to be hypercompetitive and drive volumes? And is that a shift that we should expect going forward?

感覺這裡有一個戰略轉變可能會持續下去。於是，銷量就上漲了很多。您說您想滿載運轉，但仍然有一些金屬利潤，您是否會稍微降低價格以增強競爭力並提高產量？這是我們未來該期待的轉變嗎？

Hey Peter, this is --

嘿彼得，這是--

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

彼得，是的，你為什麼不繼續，泰。我只是想——我們不會以任何方式擾亂市場，導致鋼鐵市場的市場定價受到抑制，但有些產能已經被停產。

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

因此，與其他工廠相比，我們的工廠效率極高。但是泰森，請詳細說明。

Sure thing. And Peter, no, we're not changing our pricing strategy and lowering market prices or anything like that. It is a realization like I mentioned earlier that the trade market will be necessary for us to run full. We do have our team that is actively, and all the time exploring market and see and determining what makes sense for us around the mill.

當然可以。彼得，不，我們不會改變我們的定價策略並降低市場價格或類似的事情。正如我之前提到的，我們認識到貿易市場對於我們的全面運作是必要的。我們的團隊確實積極主動，一直在探索市場，了解並確定對工廠來說什麼是有意義的。

I mean, you probably know our mills is pretty focused and that's what allows us to keep our costs in line. So it the balance of what makes sense for us and what we're actually able to serve. But it's not a pricing strategy, it's more just a market evaluation and opportunities and what makes sense for us in the mill.

我的意思是，您可能知道我們的工廠非常專注，這就是我們能夠控製成本的原因。因此，它是對我們有意義的內容和我們實際能夠提供的服務之間的平衡。但這不是定價策略，它更多的是市場評估和機會以及對我們工廠有意義的內容。

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

好的。堅持這一點，金屬邊緣再次被稱為逆風。是否有任何跡象表明這種情況何時最終會正常化並且不再成為利潤率的阻力？

It's difficult to predict exactly when. We have seen things like Karl mentioned, just kind of with the softness in the market, we have seen the steel market softened a bit. But overall, it's down obviously from historical times that we've seen over the last several years. And so we're getting into a more normal range that we've seen.

很難準確預測何時。我們已經看到了卡爾提到的事情，隨著市場的疲軟，我們看到鋼鐵市場略有疲軟。但總體而言，它明顯低於我們過去幾年所看到的歷史時期。所以我們正在進入一個我們所看到的更正常的範圍。

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

好的，太好了。最後，回到汽車領域。再次關注與上季相比發生了相當多連續變化的細分市場。

So the automotive volumes down 9%, is that based on your visibility, something that should continue for awhile? Or was this just a notable air pocket in the third quarter?

那麼汽車銷量下降了 9%，根據您的可見度，這種情況是否應該持續一段時間？或者這只是第三季的一個值得注意的氣穴？

Yes. Thanks. That's a great question. We normally going into Q4, see a pickup for a variety of reasons, one of which is we got a large Asian [net] of factories and we do see some pickup before Chinese New Year, that's just a routine thing.

是的。謝謝。這是一個很好的問題。我們通常會在第四季度看到回升，原因有很多，其中之一是我們在亞洲擁有大量工廠，我們確實在農曆新年之前看到一些回升，這只是例行公事。

We believe we will see some pickup before Chinese New Year this year. Will it be is begins normal? That's what we're still trying to work through Peter.

我們相信今年農曆新年之前我們會看到一些回升。會開始正常嗎？這就是我們仍在努力透過彼得實現的目標。

Okay. Very good. Thanks so much, guys. I appreciate the feedback.

好的。非常好。非常感謝，夥計們。我很感激您的回饋。

Thank you.

謝謝。

Judy Merrick, Truist Securities.

朱迪·梅里克，Truist 證券公司。

Great. Thanks, this is Judy, on for Keith Hughes. If you could kind of clarify the pace at the mattress component sales? You said the domestic production was up high single digits and you're looking for mid-single digit decline in fourth quarter. Is that's still on flat US consumption?

偉大的。謝謝，我是朱迪，替基斯·休斯發言。能否澄清一下床墊組件銷售的節奏？您說國內產量成長了高個位數，而您預計第四季將出現中個位數下降。美國消費仍持平嗎？

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

那麼，我們認為美國市場第四季將會下跌。受進口影響，國內市場降幅大於整體消費。

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

好的。然後就是你看到ComfortCore，你說它比業界好一點。這是否表明本季度有所改善，或者這就是它的表現？

That's just generally how it's been performing over time. And some of it is obviously the shift from Open Coil to ComfortCore over a long period of time and also just the performance of some of our customers. We've been we have Open Coil and certainly the Box Spring product.

這就是它長期以來的表現。其中一些顯然是在很長一段時間內從開式線圈到 ComfortCore 的轉變，以及我們一些客戶的表現。我們一直都有開式線圈，當然還有盒式彈簧產品。

Okay, great. Thank you.

好的，太好了。謝謝。

Thank you, Judy.

謝謝你，朱迪。

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

謝謝。目前沒有其他問題。我現在想把發言權交還給布蘭斯坎姆，徵求結束語。

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

感謝您加入我們以及您對 Leggett & Platt 的興趣，祝您有個愉快的一天。

Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

謝謝。今天的電話會議到此結束。我們感謝您的參與。此時您可以斷開線路。享受你一天剩下的時間。