FINAL TRANSCRIPT

LEG - Q4 2003 Leggett & Platt Earnings Conference Call

Event Date/Time: Jan. 29. 2004 / 9:00AM ET
Event Duration: 56 min

OVERVIEW
LEG reported EPS in 4Q03 of $0.30, 20% above last year. 4Q03 sales were $1.14b. All five
segments recorded organic sales growth. Scrap steel prices have risen by $100 per ton, nearly
doubling, and may rise another $25 per ton in Feb. Raised dividends to an annual payout of
$0.56 per share. Q&A Focus: China, steel prices, organic sales growth, capacity utilization,
acquisitions and residential segment.

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LEG - Q4 2003 Leggett & Platt Earnings Conference Call

CORPORATE PARTICIPANTS Operator

Felix Wright Good morning, ladies and gentlemen, and welcome to the
Leggett & Platt - Chairman and CEO Leggett & Platt fourth quarter 2003 earnings conference call.
At this time, all participants are in a listen-only mode.
Dave Haffner
Leggett & Platt - President and COO Following today’s presentation, instructions will be given for
the question and answer session. If anyone needs assistance
Karl Glassman at any time during the conference please press the star,
Leggett & Platt - EVP and Head of Residential Furnishings followed by the zero. As a reminder, this conference is being
Matt Flanigan recorded today, Thursday, January 29th of 2004.
Leggett & Platt - CFO
Dave DeSonier I would now like to turn the conference over to Mr. Dave
Leggett & Platt - VP of IR DeSonier. Please go ahead, sir.

Susan McCoy
Leggett & Platt - Director of IR
Dave DeSonier - Leggett & Platt - VP of IR
Good morning. And thank you for taking part in our fourth
CONFERENCE CALL PARTICIPANTS quarter conference call. I am Dave DeSonier, the VP of Investor
Michael Braig Relations. With me today are Felix Wright, Leggett’s chairman
AG Edwards - Analyst and CEO; Dave Haffner, who is our President and COO; Karl
Glassman, our EVP and head of our Residential Furnishings
Linda Bannister
Edward Jones - Analyst Segment; and Matt Flanigan, who is our CFO; and then finally,
Susan McCoy, our director of investor relations.
Sean Harrison
Longbow Research - Analyst
The agenda for the call this morning is as follows. Felix will
John Baugh start with a brief summary of the major statements we made
Wachovia Securities - Analyst in yesterday’s press release, and then he’ll add some
Keith Hughes additional insight into our results. He will also comment on
SunTrust Robinson Humphrey - Analyst other highlights for the quarter and the year . Dave Haffner
will give an update on the fixture and display tactical plan,
Marek Ciszewski
and discuss the market trends we’re seeing in our businesses
Vestor Capital - Analyst
along with factors impacting our earnings and margins. Then
Geoffrey Dancey Felix will discuss our outlook for 2004, and finally the group
Cutler Wentzell Management - Analyst will try to answer any questions you might have.
Fred Speece
Speece Thorson Capital Group - Analyst This conference is being recorded for Leggett & Platt, and is
copyrighted material. This call may not be transcribed,
Susan Maklari
recorded, or broadcast without our express permission. A
UBS - Analyst
replay is available from the IR portion of Leggett’s web site.
Margaret Whelan
UBS - Analyst In addition, I need to remind you that remarks today
Budd Bugatch concerning future expectations, events, objectives, strategies,
Raymond James - Analyst trends or results constitute forward-looking statements.
Actual results or events may differ materially from such
Laura Champine
Morgan Keegan - Analyst forward-looking statements due to a number of risks and
uncertainties, and the company undertakes no obligation to
Joel Havard update or revise these forward-looking statements.
BB&T Capital Markets - Analyst
For a summary of these risk factors and additional information
PRESENTATION concerning forward-looking statements please refer to

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LEG - Q4 2003 Leggett & Platt Earnings Conference Call

yesterday’s press release and the section in our 10-K entitled To recover some of these costs, in the fourth quarter we
forward-looking statements. announced price increases on many of our products, and
recently we have implemented 30-day pricing arrangement
I’ll now turn the call over to Felix Wright, our CEO. for wire, with increases expected beginning in February and
again in March. Other steel related products will be increased
accordingly.
Felix Wright - Leggett & Platt - Chairman and CEO
We made progress in many areas during 2003. We started up
Thank you, Dave, and thank you for joining us this morning
our Sterling Rod Mill and are very pleased with its
for our conference call. We are very pleased with the results
performance. Sterling is performing as forecast. We completed
for the fourth quarter and the progress we continue to make
the fourth largest acquisition in our history. In July, we
in our operations. As we announced yesterday, earnings for
acquired RHC Spacemaster, a manufacturer of retail store
the quarter were 30 cents per share, exceeding guidance, and
fixtures, with annual revenues expected of $100m to $120m.
20 percent above last year. A same location sales gain of 8.7
For the year, we completed 15 acquisitions that should add
percent drove the earnings improvements, with fourth quarter
about $200m to total revenues. In addition, we divested two
sales posting a record of $1.14b.
operations with annual revenues of about $23m.
For the first time in four years, all five segments recorded
We added five Asian facilities, including our first quarter
organic sales growth and demand strengthened as the
start-up of an upholstered furniture mechanism facility in
quarter progressed. Margins benefited in the quarter from
China. We are implementing a tactical plan to address
the increased volume. Gross profit margins improved to the
performance issues in our fixture and display businesses. Dave
highest level in five quarters, and EBIT margins were at the
Haffner will discuss the past quarter’s activities in his
highest fourth quarter levels since 2000.
comments. We raised our dividends to an annual payout of
56 cents per share. Since 1971 we’ve grown dividends through
Earnings gains from higher sales were partially offset during
32 consecutive annual increases at a 15 percent compound
the quarter by continued impacts from a weaker U.S. dollar.
annual growth rate. We know of no other Fortune 500 firm
For the full year, earnings were $1.05 per share on record sales
that has achieved as long a string of increases that the growth
of $4.4b. Organic sales growth, and recent acquisitions
rate will sustain.
contributed roughly the same to the sales increase.

We issued $350m of long-term debt, locking in very favorable

Earnings were impacted by several factors this year. Benefits
interest rates for the next 10 and 15 years. We furthered
came from higher sales and lower restructuring costs, but
strengthened our balance sheet. At the end of the year, net
these improvements were more than offset by higher energy
debt was 23.4 percent of total capital. We continued
and steel costs, a weaker dollar, inventory write-downs and
generating strong cash flow. Cash from operations was about
lower production levels earlier in the year, and as you know,
$395m. And finally, we began expensing stock options this
that was particularly from U.S. spraying and [wire drawing]
year.
operations.

And with those comments, I am going to turn the call over

Rapid increases in steel costs remain a challenge as we enter
to Dave Haffner.
2004. Since last summer scrap prices have risen by roughly
$100 per ton, nearly doubling in price. Our scrap prices will
reset for the month of February next week, and we expect
Dave Haffner - Leggett & Platt - President and COO
that they may be up another $25 per ton at that point. This
is driving significant increases in the costs of our raw materials. Thank you, Felix, and good morning everyone. My comments
Our steel vendors have rescinded all previous supply will discuss our recent performance, including some of the
commitments for the first quarter, and have implemented 30 major factors impacting our EBIT and EBIT margins, and trends
day pricing in most cases. We purchase roughly 1.2m tons of in our various businesses. But first I’d like to comment on our
steel annually, accounting for about 15 percent of our cost progress under the fixture display group tactical plan.
of goods sold, so these higher costs significantly impact our
profitability.

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LEG - Q4 2003 Leggett & Platt Earnings Conference Call
As we told you last quarter, we are stepping up scrutiny of
the underperforming operations within our fixture and display
group. Though reduced market demand is part of the
problem, we really should be doing better. During this past
quarter, I joined Bob Griffin and other of our fixture and
display operating executives in visiting seven of our poorly
performing businesses within this group.
I am pleased with the priority these ; Leggett partners are
assigning to the various remediation tasks, and the leverage
they provide to my personal involvement. Our focus during
these reviews is on gross margin improvement, administrative
cost reduction and process improvements. Specific initiatives
include review of standard cost by customer and product; a
critical review of all of our customer accounts, including
raising prices if necessary, or walking away from business if
we have to; negotiating cost reductions with vendors; head
count reductions; continuous improvement projects, leading
to better production efficiency and labor utilization; and
improving process and procedural controls.
To date we have identified certain potential consolidation
opportunities and are analyzing options in each case. As we
continue with these reviews, opportunities to further
consolidate facilities and implement best practices will receive
significant attention. We expect these moves to be
implemented over the next year, and anticipate only modest
restructuring charges in line with those recognized the past
few years.
Now to briefly comment on other quarter highlights. During
the fourth quarter, we completed seven acquisitions that
should add about $65m to annual revenues. Four companies
were acquired in our residential segment, adding $40m in
revenue. The largest is a producer of adjustable beds. Two
plastic injection molding businesses should add $17m in
revenue to our commercial segment, and one company that
produces cables for automotive applications should add
roughly $8m in revenue to our specialized segment.
At year end, working capital as a percentage of annualized
sales was 19 percent, in line with our target. Accounts
receivable dollars were higher versus year end 2002, the result
of acquisitions and strong December sales. The inventory
dollars, on the other hand, were basically flat with 2002,
despite higher steel costs, acquisitions, and the impact from
a weaker U.S. dollar.
Now turning to the individual segments. In residential
furnishings, fourth quarter sales increased 10.2 percent, or
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7.9 percent excluding acquisitions, with most of our business
unit posting growth in the quarter. EBIT increased, reflecting
higher sales and improved overhead absorption, offset in
part by foreign currency impact. For the year, total sales
increased 2.5 percent, or 1.4 percent excluding acquisitions.
EBIT decreased for the full year, as higher raw material and
energy cost, currency factors, unabsorbed overhead at our
U.S. Spring facilities earlier in the year, and sales mix more
than offset the benefit from the sales increase.
Bedding demand was much improved in the last half of the
year. Our U.S. Spring operations posted sales growth in the
third and fourth quarters, partially offsetting the significant
declines experienced through early June. International spring
sales increased in each quarter this year, primarily from
currency impacts, but in part from unit growth. Upholstered
furniture component sales were strong throughout the year,
reflecting positive comparisons against 2002’s solid results.
Sales also increased in our fashion bed and adjustable bed
operations, and we experienced strong demand for carpet
cushion. With improving consumer confidence levels and
pent-up demand from the past few years housing strength,
we believe these positive trends will continue in 2004.
In our commercial fixturing and component segment, total
sales increased 27.5 percent in the quarter, benefiting from
our recent acquisitions and a strong 10.6 percent
improvement in same location sales. This improvement
reflects the benefit of some major programs where product
was shipped in the fourth quarter. EBIT decreased slightly as
the sales improvement was offset primarily by currency
impacts and several small factors. Margins in our fixture and
display operations continue to reflect operational inefficiency,
but we are aggressively addressing that, as I mentioned
earlier.
Sales for the full year increased 7.4 percent with acquisitions
offsetting the slight decrease in same location sales. EBIT
declined significantly for the year, primarily from inventory
write downs, the weaker dollar, higher steel costs, price
competition, and operational inefficiencies.
Although certain major retailers continued with new store
openings and refurbishments this past year, most continued
at reduced capital spending levels. Consumer confidence,
retail sales, and more importantly, business spending, seem
to be improving. We continue to believe that pent-up demand
exists since many retail environments have not been updated
for several years. With the bankruptcies on the part of some
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LEG - Q4 2003 Leggett & Platt Earnings Conference Call
of our competitors and market share gains we’ve
accomplished, along with the improvements we’re making
in our operations, we are well-positioned to benefit from the
industry’s eventual recovery.
Starting in mid-June, we began to see modest improvement
in demand for office furniture components. Although the
market remains at very depressed levels, those improvements
continued for the last half of the year. For aluminum products,
the fourth quarter total sales increased 9.8 percent, or 11
percent excluding divestitures. EBIT was roughly flat, as the
benefit from higher sales volume was offset by a change in
sales mix. For the year, total sales decreased 4.2 percent, but
excluding divestitures, sales increased 2.5 percent. EBIT
increased for the full year, primarily reflecting single location
sales gains. The non-recurrence of 2002 charges for
restructuring and inventory and equipment obsolescence
also improved EBIT, but this benefit was offset somewhat by
changes in sales mix, mainly lower barbeque grill production.
New programs for motorcycles, small engines, and large
appliances represented the majority of the sales increase for
the quarter and the full year. These market share gains were
partially offset by a decline in sales and production levels of
barbeque grill castings. Although we are gaining efficiency
as the new programs ramp up, this new volume is not yet
generating the level of EBIT margins we achieved with existing
business, although it will.
Our efforts to gain share and enter new markets will continue.
2004 will benefit from the programs we added this past year,
and should see further growth as other new programs start
up and as our overall markets begin to improve. We expect
these gains to be partially offset by somewhat lower grill
volume. In our industrial materials segment, the fourth quarter
total sales increased 2.9 percent, with a divestiture partially
offsetting 5.7 percent growth in same location sales. EBIT
improved, reflecting higher sales and the start-up of our
Sterling rod mill. In the fourth quarter of 2002, the rod mill
was incurring significant start-up costs, and in this past fourth
quarter that facility operated profitably, and according to our
plan.
For the year, total sales declined 5.3 percent, or 5.1 percent
excluding divestitures. EBIT decreased, reflecting lower sales
and production levels earlier this year, along with higher steel
and energy costs. These negative impacts were partially offset
by favorable results at our Sterling rod mill, and a gain from
the sale of a tubing fabrication business. The full year sales
decline resulted from weakness in many of our end markets,
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including weak bedding demand early in the year, and also
market declines for ATVs and accessories. Volume increased
late in the year as some of our end markets began improving.
We are expecting these improvements to continue into 2004.
In specialized products, fourth quarter sales grew 12.4 percent,
or 11.4 percent excluding acquisitions. We saw improvements
this quarter in both our automotive and machinery
businesses. EBIT also increased on these stronger sales,
despite continuing pressure from foreign currency. Total sales
for the year increased 11.6 percent, or 10.7 percent excluding
acquisitions. For the full year, EBIT increased slightly as sales
gains were offset by the weaker dollar, sales mix and other
factors. This segment has consistently posted sales growth
over the past two years, with the past seven quarters, each
showing positive comparisons. This year’s improvements
reflect currency rate changes, but also continue to benefit
from new programs in our automotive businesses as well as
growth in machinery sales.
With those comments, I’ll now turn the call back over to Felix.
Felix Wright - Leggett & Platt - Chairman and CEO
Thank you, Dave. We would like to talk now about the outlook
for 2004. Earnings growth in 2004 will be heavily influenced
by three major factors; the amount of sales growth, the degree
to which we recover escalating steel costs, and the extent of
improvement in the fixture and display operations.
For planning purposes, we are assuming 2004 sales growth,
excluding acquisitions, between 3 percent and 8 percent for
the full year. We are facing the ongoing challenge of rapid
steel cost increases. We cannot offset increases of this
magnitude with enhanced efficiencies, so we are reluctantly
compelled to pass along the price increases to our customers.
A modest EBIT gain is expected from operational
improvement in the fixture and display businesses. We will
be better able to quantify this benefit later in the year.
Incorporating all of these factors, our earnings guidance for
the full year 2004 is $1.15 to $1.35 per share.
For the first quarter, we expect sales to be approximately 10
percent higher than the first quarter of 2003. The fourth
quarter included a one cent EPS benefit from the realization
of foreign tax credit carry forwards that will not recur in the
first quarter. Based on these assumptions, we expect earnings
of 26 cents to 31 cents per share for the first quarter. And with
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LEG - Q4 2003 Leggett & Platt Earnings Conference Call

those comments, I am going to turn the call back over to Dave mid-fourth quarter, that is a very quickly growing category
DeSonier and we will try to answer any of the questions you and that business is at a 15 percent to 20 percent CAGR. That
may have. business is extremely strong at this point, with the major
introduction on behalf of one of the bedding manufacturers.

Dave DeSonier - Leggett & Platt - VP of IR

Okay, that concludes our prepared remarks. We thank you
for your attention and we will be glad to answer your
questions. In order to allow everyone an opportunity to
participate, we request that you ask your single best question,
then voluntarily yield to the next participant. If you have
additional questions, please reenter the queue and we will
answer as many questions as you might have. Marcia, we are
ready to begin the Q&A.
QUESTIONS AND ANSWERS
Operator
Thank you, sir. (Operator instructions) The first question is
from Margaret Whelan. Please state your company name,
followed by your question.
Susan Maklari - UBS - Analyst
Good morning, it’s Susan Maklari, actually, for Margaret from
UBS. Can you guys talk a little bit about what you are seeing
in your residential segment? Sales were up nicely there, but
can you give us just a bit more detail on the trend?
Susan Maklari - UBS - Analyst
Okay, and then just one more quick question. As business
trends seem to be accelerating and business is improving
across your segments, do you expect the pace of acquisitions
to increase this year? Are you seeing any change in the
valuations and prices that people are looking for?
Felix Wright - Leggett & Platt - Chairman and CEO
Susan, it is Felix. I think that the pace of acquisitions or the
cost of those acquisitions I think we probably haven’t seen
that much of a change at this point, as far as either an
escalation in those prices or anything such as that. I would
expect that our acquisition pace should be somewhat in the
range of where you saw it last year, maybe somewhat
enhanced, but somewhere in that range. I don’t think that
2004 will bring us back to the level of acquisitions that we
had had in some years past, but I think somewhere in that
range of that 4 percent to 6 percent range is probably where
you should expect those in 2004.
Susan Maklari - UBS - Analyst
Okay, thank you.

Karl Glassman - Leggett & Platt - EVP and Head of Residential

Operator
Furnishings
Thank you. Our next question comes from Budd Bugatch.
Susan, this is Karl Glassman. The trend certainly strengthened
Please state your company name, followed by your question.
as the fourth quarter progressed. As we had told you earlier,
that we really saw a turn on the bedding side of the business,
say middle of June, and continued to see strength. December
Budd Bugatch - Raymond James - Analyst
was unusually strong, business continues to be strong at this
point, affected maybe slightly in the last few days with the With Raymond James, good morning Felix, David, Karl and
nationwide weather situation. everyone else that’s there.

But on the furniture side itself, the hardware business was

extremely strong all year, as compared and contrasted to a Felix Wright - Leggett & Platt - Chairman and CEO
very strong 2002. That business continues to be strong as we
Hi, Budd.
speak. Market share gains in our carpet underlay business
that accelerated through the year, adjustable beds, Dave
announced the adjustable bed acquisition we made

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LEG - Q4 2003 Leggett & Platt Earnings Conference Call

Budd Bugatch - Raymond James - Analyst to come anywhere close to trying to absorb any of these
increases of this magnitude, so they’ve got to go through the
Seeing as I am going to adhere to the DeSonier rule, can you,
system all the way to the consumer.
based upon after all of the restructuring and what you know
now, could you kind of give us EBIT margin targets by
So it’s something we are dealing with, but those three
segment, by the five segments, what you think maybe the
businesses are the ones that are mostly impacted.
upper bounds are? Now I realize that’s not a 2004 question,
it’s a 2000 and whenever question, but what you think your
ultimate margins can be.
Budd Bugatch - Raymond James - Analyst
Thank you.
Dave DeSonier - Leggett & Platt - VP of IR
Budd, this is Dave DeSonier. You probably are aware of most
Operator
of this, but we still think EBIT margin overall can get back to
where we were in that 12 percent to 13 percent range, and Thank you. Our next question comes from Laura Champine.
like you said, that’s probably not a 2004 realization, but in the Please state your company name, followed by your question.
future that’s still our target. Commercial should be above the
corporate average, maybe in the 14 percent to 15 percent
EBIT range, aluminum will be 10 percent at a minimum, maybe Laura Champine - Morgan Keegan - Analyst
a little better. And the remaining segments will be, you know,
This is Laura Champine from Morgan Keegan.
at or maybe slightly below that corporate average.

Felix Wright - Leggett & Platt - Chairman and CEO

Budd Bugatch - Raymond James - Analyst
Hi, Laura.
Okay, and then obviously the $64 question as a follow up,
when and what does the steel issue do, and to which division
mostly does it hit?
Laura Champine - Morgan Keegan - Analyst
Hi. Could you – forgive me if you’ve already done this, but
Felix Wright - Leggett & Platt - Chairman and CEO can you break out for the full year 2003 the acquisitions that
should add $200m to revenues, and the divestitures that
Budd, that’s a huge question. I’ve been here longer than most,
should take $23m away, can you break that down by
as you know, but I’ve never seen one like this. In the early 70’s
segment?
we had something that almost approached this in price
controls and everything else, but we’ve never seen one with
the rapid escalation that we have got on our hands at this
Dave DeSonier - Leggett & Platt - VP of IR
point, and in fact it’s so bad that we do need to see the
government step in and place some kind of surcharge on The answer is yes we can, I’m not sure we can do it live, but
scrap exports to where that we can try to get some kind of a we can give it a shot. We know the biggest one will be in
control on this. The consumer is going to be just devastated commercial, and that’s going to be RHC Spacemaster which
as to what is going to happen with the magnitude of what’s I think we said should add $100m to $120m in revenue, so
going on in steel currently. that’s the bulk of that $200m. The divestitures are a little easier
because there are only two, and the largest was in industrial
Obviously the residential section is a huge user of steel, both and was probably three-quarters of that $23m. The other was
hot roll, cold rolled, et cetera. Our automotive products and in residential and is the remainder of that. I’m trying to think
our fixtures and displays, those are obviously the three big where the other bulk of it would come from. Most of the other
parts of the company that we are having to deal with, and acquisitions are much smaller than that one.
we are trying to deal with it as best we can with our customers
in mind, but with the movement that has happened, there is
nobody that has got enough gross margin or anyplace else

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LEG - Q4 2003 Leggett & Platt Earnings Conference Call
Felix Wright - Leggett & Platt - Chairman and CEO
But the plastic acquisitions get in commercial, so commercial
is going to be the –
Dave Haffner - Leggett & Platt - President and COO
Yes, unique molded products, which was in October, was
$11m of that $17m and the other SEP Plastics was $5m,
Orthomatic was $25m to $30m.
Dave DeSonier - Leggett & Platt - VP of IR
That’s residential. Laura, I’ll get you a better set of numbers,
but that is just the majority of it.
Laura Champine - Morgan Keegan - Analyst
Okay. Well I’m hoping, David, that you will let me, since I didn’t
get a complete answer to that one, ask one more.
Dave DeSonier - Leggett & Platt - VP of IR
Okay.
Laura Champine - Morgan Keegan - Analyst
So in the commercial fixturing and components segment,
how much of the year-over-year decline in operating income
was affected by currency, and how much was dilution from
RHC Space Master?
Dave DeSonier - Leggett & Platt - VP of IR
The second part of that is a pretty easy answer, because I
don’t think we had much dilution from RHC –
Dave Haffner - Leggett & Platt - President and COO
We didn’t have any dilution from RHC Space Master. I don’t
know the answer from a currency perspective.
Dave DeSonier - Leggett & Platt - VP of IR
Currency was roughly $5m in commercial for the year.
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Laura Champine - Morgan Keegan - Analyst
Thank you.
Operator
Thank you. Our next question comes from Joel Havard. Please
state your company name, followed by your question.
Joel Havard - BB&T Capital Markets - Analyst
BB&T Capital Markets. Good morning, everybody.
Felix Wright - Leggett & Platt - Chairman and CEO
Good morning, Joel.
Joel Havard - BB&T Capital Markets - Analyst
Felix or Dave or whoever wants to take a stab at this, with the
gross margin improvement we saw in Q4, in the context of
steel costs, can you talk about specifically what the drag
would have been from steel and/or what that gross margin
might have looked like? Because it looks pretty good on its
own, what that gross margin might have looked like excluding
the steel cost issues you are facing right now.
Felix Wright - Leggett & Platt - Chairman and CEO
Joel, that’s a pretty tough question. We started moving some
of those steel costs through the system, the first part started
in December in the residential spring side of the business.
We did not get any through the upholstered furniture side
of the business in the fourth quarter, so there would have
been some slight drag there. But as far as – Industrial got
through --
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Joel, this is Karl. What happened in residential is we were
experiencing accelerating steel costs specific to rod and wire
in the third quarter. Okay? So third quarter was, the gross
margins in third quarter were negatively impacted by those
cost inputs. In the fourth quarter we announced and
implemented the first price increase on bedding components,
which we saw wire rod before we saw the steel side, the sheet
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LEG - Q4 2003 Leggett & Platt Earnings Conference Call
side, effective October 27th. Okay? And then passed the
second increase through effective January 2nd.
So from a residential perspective, it was a catch up and
certainly weren’t made whole, but caught a good part of it.
Where we start to see is now it’s, as Felix said, it’s moving so
darn fast that it’s a challenge to catch up here in this first
quarter.
Joel Havard - BB&T Capital Markets - Analyst
Okay. I can interpret that then to say that Q4 based on the
timing was, you had sort of a partial price recapture? But it’s
slipping away from you a little bit since. What I’m getting at
there of course is Q4 gross margin may be difficult to attain
again in the near term, until you can start to stabilize or
capture some of that increase via other price increases from
your part. Is that right?
Felix Wright - Leggett & Platt - Chairman and CEO
Joel, the only thing that we can tell is that we are attempting
to try to do the same thing that our vendors have done to us.
We have had – I don’t believe we have got a steel contract at
this point that we had prices locked in the first quarter that
haven’t been cancelled, and we are now on a 30-day pricing
schedule and we are trying to do the same thing from our
industrial part of our business as well as through some of the
components is trying to go into a 30 or 60-day pricing mode
with them.
Now obviously you are going to get some drag or some lag,
but we are trying to operate under this horrible situation, in
that kind of a manner, but there will be some lag.
Dave Haffner - Leggett & Platt - President and COO
Also, Joel, I mean just mathematically if you recovered, only
recovered your absolute costs, your margins experience slight
decline, and I realize people don’t know that, but if we just
recovered our costs, margins would decline slightly as a
percentage of sales.
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FINAL TRANSCRIPT
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
And what’s happening to us, because of the uptick in sales,
the additional throughput through these assets is helping
cover some of that raw material cost.
Joel Havard - BB&T Capital Markets - Analyst
That helps. DeSonier, I apologize, but one little follow up on
there. Felix or Dave, in your experience in dealing with these
kinds of materials cost environments, is tagging along, playing
catch up with price increases – I know you guys have talked
a lot about your relationship with your customers and how
you play ball when costs are helping people. Are you getting
much push back? What other mechanisms do you have at
your disposal to fight this fight?
Felix Wright - Leggett & Platt - Chairman and CEO
Well, Joel, it’s tough on us, it’s tough on our customers, and
this one is such a magnitude it’s got to go all the way to the
consumer, and we’ve got to help our customers and hopefully
our vendors are going to try to help us, but we’re not getting
much at this point. We’ll try to get it all the way through the
system to the consumer, because that’s the only place this
one can go, it’s just too much of a magnitude. There’s not
that much gross margin between where we buy the steel and
where our customer winds up and sends it to the consumer
to absorb this stuff. It’s got to go through the system some
way, so we are trying to work with them, obviously and they
understand because it’s not just Leggett it’s across a number
of industries, you read about it every day that anybody that
is using any kind of a seal, and quite frankly I think that if we
continue the way that we are that there could be even some
availability issues on certain items that people have to deal
with. Thank goodness we’ve got a Sterling rod mill that we
have started up that is making 50 percent of our product that
I believe we can get scrapped if we’ll pay the price for it, and
we are certainly going to do that. So I think that’s one comfort
that our customer can have, that we are going to have
material for them, but I believe there’s going to be some other
people that availability is going to be a problem.
Joel Havard - BB&T Capital Markets - Analyst
Okay. Guys, sorry to drag that out so much. Thanks, and good
luck.
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LEG - Q4 2003 Leggett & Platt Earnings Conference Call
Felix Wright - Leggett & Platt - Chairman and CEO
Thank you.
Operator
Thank you. Our next question comes from Michael Braig.
Please state your company name, followed by your question.
Michael Braig - AG Edwards - Analyst
AG Edwards. Just to expand on that pricing issue the attempts
to go to current pricing, or ad hoc pricing. I think you had
mentioned throughout 2003 that mix or decontenting,
especially in the residential sector, was penalizing margins.
Does the kind of cost pass through and price kick back you
are going to get from customers going to continue to retard
that mix or that value-added features capability?
Dave DeSonier - Leggett & Platt - VP of IR
Mike, this is Dave DeSonier. In the first half of the year, part
of the mix issue was trading off, probably betting for other
products in that segment that may not have as strong a
margin. But I don’t know that we would say that same thing
for the fourth quarter.
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
I would agree. And from a decontenting standpoint – that’s
a new word I’ve got to learn – that we don’t see an
acceleration of that. The customer specifications now, that
all of us in the chain are working so lean that I can’t see
significant spec changing or despecing at this point and as
Felix said, our customers and the retailers are in the same
position, that this has got to go through the system to the
consumer. Certainly not without resistance, but it’s just like I
said, it’s so much, so fast that that is our expectation at this
point.
Dave Haffner - Leggett & Platt - President and COO
And this, Mike, sort of goes back to part of Joel’s question.
Those customers that are either maker/users or buy steel in
some other form or format such as structural to build stores,
they understand more directly what we are going through.
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FINAL TRANSCRIPT
It doesn’t make it necessarily easy, at least there’s an
understanding there that some of the other customers that
are a step or two away from steel purchases don’t, but we do
see a little bit of decontenting continuing to take place in
some of our automotive products. What we are doing there
is trying to do some things internally though to maintain our
margins while we value-engineer some of those costs down.
There is still some decontenting going on, not so much in
residential.
Michael Braig - AG Edwards - Analyst
Thank you.
Operator
Thank you. Our next question comes from Linda Bannister.
Please state your company name, followed by your question.
Linda Bannister - Edward Jones - Analyst
Good morning. Edward Jones. Some questions on the fixtures
and displays business. Felix, can you give us an update on
where you are in terms of hiring any executives for that
business? And then my second question is for Dave, given
the time that you’ve spent in the division and the fact that
organic growth now is starting to return, when do you expect
to see some margin improvement?
Felix Wright - Leggett & Platt - Chairman and CEO
Linda, this is Felix. Let me take the first portion. We announced
earlier that we had hired an EVP of that group from a
manufacturing standpoint. He has been in lock step with Bob
Griffin who is the CEO of that business, and Dave Haffner in
all of these changes. We have also made a number of other
changes in the management down below there to take some
good operating and sales executives and put them into
certain positions within the three different parts of those
businesses, and then obviously when we buy the Space
Master operation we do get some of their management talent
at that point there.
So from a structuring standpoint, we do have the majority of
those people in place, however we are going to wind up,
there are two other people that will be put in place and they
will be from a finance and from a marketing standpoint, and
those are in the process of being put in place as we speak,
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LEG - Q4 2003 Leggett & Platt Earnings Conference Call
but I will let Dave address the rest of it, he may want to make
some other comments about the management.
Dave Haffner - Leggett & Platt - President and COO
Well the only thing on the management is that we are in final
interviewing stages for the CFO for that group, so that is
coming to a head pretty quickly. With regard to things that
we are doing and the improvement in market share and the
improvement or apparent improvement in some demand,
when will we expect to see margins improve? The answer is
quickly. The harder question is, when are we going to see
those margins – this gets back to Budd’s question, when are
we going to see those margins back where you think they
will ultimately be? That’s going to take longer, but you know
there is seasonality in this business and margins vary quarter
to quarter. I am talking about fixtures and displays now. But
we will see margin improvement right away. The
improvement that we are going to see this quarter and next
quarter still will not satisfy us, we will be several quarters
before we get it back to where we need to be, but
interestingly enough, there are a finite number of ways, albeit
a large number of ways, to improve those margins and we’re
chiseling away at them one by one. So you can expect
improvements right away.
Linda Bannister - Edward Jones - Analyst
Thank you.
Operator
Thank you. Our next question comes from David McGregor.
Please state your company name, followed by your question.
Sean Harrison - Longbow Research - Analyst
Good morning, gentlemen. It’s actually Sean Harrison for
David, Longbow Research. I guess while we’re on the topic
of raw materials, I guess could you talk about maybe if you
are seeing rising raw material costs in other areas, and then
additionally I know lumber had been a topic in prior
conference calls, could you touch on that as well.
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FINAL TRANSCRIPT
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
On the lumber side, the situation is multi-faceted. Early in
2003 the issue was [inaudible]. The other issue was trying to
pass along a tough situation as it relates to counter veiling
duties and tariffs put on the Canadian exports by the U.S.
government, and the negotiations between the countries
and the uncertainty of the negotiations of the countries
through that process that many of the producers in Canada
were not impacting their selling prices by that duty, thinking
that they were temporary. So there were those pressures.
Most significant, though, was the change in the relationship
of the Canadian dollar to the U.S. dollar in that we produce
in Canadian dollars and sell in U.S. dollars and that has
certainly not been a positive for us. Those businesses continue
to be under, all three or certainly the latter two of those
pressures, we have seen an uptick in demand.
We have just recently, within the last two weeks actually gone
to the market with a price increase to our bed frame lumber
customers that is driven by the combination of this duty
situation and the currency, and we are attempting to and
have been successful in passing that through in recent weeks.
Dave Haffner - Leggett & Platt - President and COO
And then with regard to aluminum we’ve seen some upward
pressure that pales in comparison to the [ferrous] market, but
there is some upward pressure on secondary alloys, which is
what we utilize. We do a good job of buying those sals and
ingids and have arrangements with our customers whereby
those metal costs are included in our selling prices as they
vary, so do our selling prices in those cases.
One thing, although we don’t buy a substantial amount of it,
stainless steel has just gone through the roof, that’s primarily
because of the cost of nickel, and thank goodness we don’t
buy a heck of a lot of stainless steel, because it is very, very
challenging at this point.
Other things like corrugated and paint and lubricants and
abrasives and other things like that all have a tend to want
to be upwardly biased, however we are doing a good job of
leveraging our corporate purchases and regional purchases
on those, so those don’t pose a significant problem.
Sean Harrison - Longbow Research - Analyst
All right. Thank you very much.
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LEG - Q4 2003 Leggett & Platt Earnings Conference Call
Operator
Thank you. Our next question comes from John Baugh. Please
state your company name, followed by your question.
John Baugh - Wachovia Securities - Analyst
Wachovia Securities. Congratulations, nice quarter, by the
way. My question is – and if you addressed it earlier, I am
sorry, we were on other calls – but the dollars versus unit,
both the consolidated revenue number you reported as well
as specifically in the residential segment.
Dave DeSonier - Leggett & Platt - VP of IR
John, you are getting at how much inflation is in that number?
John Baugh - Wachovia Securities - Analyst
Yes, how much is pricing and how much is in units?
Dave DeSonier - Leggett & Platt - VP of IR
I would guess there is not much inflated.
Felix Wright - Leggett & Platt - Chairman and CEO
Very little.
Dave DeSonier - Leggett & Platt - VP of IR
I don’t even know if it would be a percent for the fourth
quarter.
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Certainly it would not be a point.
John Baugh - Wachovia Securities - Analyst
And that would apply to the consolidated results as well as
the residential?
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FINAL TRANSCRIPT
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
It would be diluted down from there.
John Baugh - Wachovia Securities - Analyst
And was bedding stronger than furniture within the
residential, or was it fairly equivalent?
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
I would say furniture has – our segment of the upholstered
furniture business, from a hardware perspective, has been
stronger and probably continues to be stronger than bedding,
but the gap is narrowing. Bedding is accelerated, furniture
was strong all year.
John Baugh - Wachovia Securities - Analyst
And I know I am violating the DeSonier rule, but I’m asking
these questions quickly. Last one. And I’m ignorant on steel,
so pardon me, but is there any way for any of your customers
to get these products from somewhere around the world,
elsewhere in other words, at a different price or is this just a
noncompetitive issue.
Felix Wright - Leggett & Platt - Chairman and CEO
The channel for –
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
It’s always a competitive issue, first off. The steel situation is
not a U.S. phenomenon, it is a worldwide issue that we are
dealing with – I’ll give you an example. In the U.K. where we
produce wire for our bedding operations, we were on a
Monday given a surcharge of a margin of eight pounds a ton,
the following Monday it was 32 pounds a ton. It is moving at
the same rate in Europe as it is in the States. China, we have
just experienced our seventh price increase in China since
January 1st of 2003. So the Chinese are dealing with a surge
in cost and then a problem with electrical, electricity
availability, so what’s happening is our customers look to
other markets, they are placing orders and those orders aren’t
being filled and are being requoted. So there is not a place
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LEG - Q4 2003 Leggett & Platt Earnings Conference Call
for them to go, but that’s a geographic issue and a worldwide
steel issue, it is not a market share issue.
John Baugh - Wachovia Securities - Analyst
Karl, they think they can get a better deal somewhere else,
so they are trying it, but in reality they really can’t. Is that what
you are saying?
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Yes.
Felix Wright - Leggett & Platt - Chairman and CEO
That’s basically it, John.
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Yes, they assume – first they assume it’s a Leggett
phenomenon and then they assume it’s a U.S. phenomenon
and then they find out that it’s a worldwide issue.
John Baugh - Wachovia Securities - Analyst
So at the end of the day you don’t expect large market share
movement from one country to another because of this issue?
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Not at all.
John Baugh - Wachovia Securities - Analyst
Thank you very much.
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
As a matter of fact, I expect that there will be lesser pressures
than there have been in the last few quarters because of the
Chinese situation.
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FINAL TRANSCRIPT
John Baugh - Wachovia Securities - Analyst
Interesting. I’m sorry, and you said seven increases in prices
in China since the beginning of 2003?
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Yes.
John Baugh - Wachovia Securities - Analyst
Wow. Thank you.
Operator
Thank you. Our next question comes from Keith Hughes.
Please state your company name, followed by your question.
Mr. Hughes, your line is open at this time.
Keith Hughes - SunTrust Robinson Humphrey - Analyst
SunTrust Robinson Humphrey. In the residential business, is
it fair to say we are going to see several more price increases
in the first half of this year on your products to help offset
this?
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Unfortunately that’s fair to say.
Keith Hughes - SunTrust Robinson Humphrey - Analyst
Okay, and in terms of the problems, having some of these
stick, are customers just looking to move stuff in house, or –
I’m not really seeing where they have a lot of options at this
point.
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Their steel costs are certainly accelerating at the same rate
as ours, if they are maker/users. As a matter of fact, because
they don’t enjoy the purchase leverage that we do, that they
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LEG - Q4 2003 Leggett & Platt Earnings Conference Call
are probably accelerating at a greater rate. Keith, it’s a terrible
situation, none of us have a choice.
Keith Hughes - SunTrust Robinson Humphrey - Analyst
Okay. Thank you.
Operator
Thank you. Our next question comes from Marek Ciszewski.
Please state your company name, followed by your question.
Marek Ciszewski - Vestor Capital - Analyst
Good morning everybody, this is Marek Ciszewski with Vestor
Capital. Just a quick two questions. First I just wanted to see
if in the past you have stated that every $10m in revenues
equals about an EPS with the current capacity you are able
to support about $500m of additional revenues, so I just
wanted to find out if that still is the case. And then, just a
secondly we are going real quick, maybe is the Asian
production that you have, is it primarily for local production
or is it for export? And then in those terms, on a relative basis,
do you feel you are ahead, behind, or pretty much on par
with competition in moving production to China?
Dave Haffner - Leggett & Platt - President and COO
Marek, this is Dave Haffner. Let me take a stab at the first part
of that, which is primarily the gearing or the leverage
question. It varies, depending upon the individual segment
or division within the segment, and that of course gets to
their existing capacity utilization by division, by segment. But
if you blend it all together, if you blend it all together, we still
have a feeling that for every $10m or $11m we can get that
approximate penny per share. But it’s important to know that
if we have a bias or a skew of volume in a particular area that’s
already significantly utilizing their assets, that that gearing is
less than it is otherwise. But on average, yes.
And the second part of that first question was, do you still
have about a half a billion dollars in capacity, unused capacity,
the answer is yes. That assumes the same product mix that
we have now, so if for some reason that mix were to shift
slightly, it could be that we would have more or less than that
$500m.
So that’s the first part. Karl needs to take the Asian part.
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FINAL TRANSCRIPT
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
As it regards China, our spring operations are in place solely
for domestic consumption. Our upholstered mechanism
facility is all for Chinese consumption. That product, in many
cases, may be incorporated into a product in China on our
customer’s behalf and shipped back to this country, but we
sell it primarily it stays in China. There are sales in China to
Chinese producers.
On the automotive side, a good part of that joint venture,
productive capacity would come back to the States. We are
sourcing from a machinery perspective, we are building
machines that are built in China, sold in China, but that
business also is in the procurement business and also the
milling business of parts that in parts form are sold back to
the United States.
Felix Wright - Leggett & Platt - Chairman and CEO
And then I think the last part of your question was, is how do
we feel as to where we are in what we are doing in Asia versus
what we should be doing in Asia or what competition may
be doing in Asia. We believe we have ourselves positioned
at this point where we should be. There are some things that
if we would have done earlier we would have probably made
some mistakes, but we do think that we are ahead of the
curve now to where that as far as either sourcing products
for ourselves, sourcing products for our customers, and et
cetera that we are where we feel very comfortable.
We have approximately 2,000 people employed in China as
we speak today, and continuing to look at other factories, et
cetera. But we believe we are positioned just right.
Operator
Thank you. Our next question comes from Geoffrey Dancey.
Geoffrey Dancey - Cutler Wentzell Management - Analyst
Cutler Wentzell Management. I was wondering, you gave in
your press release that 2004 organic sales growth between
3 percent and 8 percent for the full year, I was wondering if
you could break that down by segment?
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 FINAL TRANSCRIPT
LEG - Q4 2003 Leggett & Platt Earnings Conference Call

Dave DeSonier - Leggett & Platt - VP of IR Operator

We can give you a rough feel. I’d say for the most part it’s Thank you. (Operator instructions) The next question is from
going to be spread pretty evenly across the segments, Margaret Whelan. Please go ahead with your follow up
probably stronger in commercial than the others, maybe up question.
to twice the percentage growth, so if growth was 5 percent
across the board, you might get up to 10 percent in
commercial, but the rest of them would be pretty even with Margaret Whelan - UBS - Analyst
that corporate average.
Good morning, guys.

Geoffrey Dancey - Cutler Wentzell Management - Analyst

Felix Wright - Leggett & Platt - Chairman and CEO
Okay. All right. Thank you.
Hey, how are you?

Operator
Margaret Whelan - UBS - Analyst
Thank you. Our next question comes from Fred Speece. Please
I’m terrific, and congratulations, I am delighted to see the
state your company name, followed by your question.
quarter came in so well. I have two short questions. The first
one is, if you mentioned capacity utilization, I didn’t catch it?

Fred Speece - Speece Thorson Capital Group - Analyst

Speece Thorson Capital Group. I’ll respect Dave’s rule and ask Felix Wright - Leggett & Platt - Chairman and CEO
one question. The point of sale, is it more dependent upon
Dave will give it to you.
retail remodeling or square foot expansion, and do you see
any backlog building or order building there?
Dave Haffner - Leggett & Platt - President and COO

Felix Wright - Leggett & Platt - Chairman and CEO All right. I am so glad you asked that question. At the end of
the fourth quarter, our capacity utilization on average for
Where that that used to be a lot more square footage
residential furnishings was at 76.2 percent. And it ranges, of
expansion, it has certainly shifted much greater to renovations
course, as you know we’ve got lots of various divisions, and
and reworks, et cetera. Whereas I think that maybe used to
it ranges from a low of 59. 3 percent up to 95 percent.
be 30 percent or 35 percent renovations, and maybe 65
percent or so more square footage, that certainly has reversed,
and we think obviously there is a lot of retail space out there
Margaret Whelan - UBS - Analyst
now, maybe there is a lot of retail space that is unused or
unutilized, but we think that the refurbishing the renovation Okay.
is certainly going to be the biggest driver, it won’t be all of it
because you are still going to have the Wal-Mart’s and the
Home Depot’s and a lot of other people that are continuing Dave Haffner - Leggett & Platt - President and COO
to put more square footage in play, and we’re certainly a And then in fixtures, displays and plastics, we are at about –
player in that part of the business too. But the big driver in they range from 51.4 percent to 67 percent. Aluminum we
our business is certainly going to be the renovations. are at 70.7 percent, sterling steel we are at 100 percent.

Fred Speece - Speece Thorson Capital Group - Analyst Margaret Whelan - UBS - Analyst
Thank you. Wow.

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LEG - Q4 2003 Leggett & Platt Earnings Conference Call
Dave Haffner - Leggett & Platt - President and COO
Although I really think we could find one more ton
somewhere. Wire we are at 89.7 percent, tubing and
automotive we are between 80 percent and 85 percent and
machinery and technology we are at 72 percent of our
capacity.
Margaret Whelan - UBS - Analyst
Okay. Now the reason I am asking is because I am wondering,
if you look for example in residential furnishings, you put up
such a solid number in terms of sales, yet your margin is 10.3
percent, and if I look back historically, you’ve had a higher
margin there and I think what might have been even lower
sales. So I am just wondering, just on the progression during
the quarter, did you take any downtime or anything?
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Margaret, this is Karl, that’s a byproduct of a number of things;
currency, mix, we certainly don’t have any downtime, those
from a productive capacity those businesses in total are
certainly more heavily utilized in the fourth quarter than they
were in the third, that variance was probably three to four
points. So it truly, what you are seeing is mix and then you
are seeing a little bit of this lag in passing through the cost
increases.
Margaret Whelan - UBS - Analyst
Okay. And then – okay, so that will catch up with you in terms
of cost increases, I guess, in the first quarter you did say?
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
I would hope, but it’s moving so fast, Margaret, no, I don’t
think it will catch up in the first quarter.
Felix Wright - Leggett & Platt - Chairman and CEO
The raw materials are moving so fast, Margaret, that’s going
to give a little pressure on the first quarter.
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FINAL TRANSCRIPT
Margaret Whelan - UBS - Analyst
Okay, but nothing, it is included in your guidance?
Felix Wright - Leggett & Platt - Chairman and CEO
Yes.
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Yes.
Margaret Whelan - UBS - Analyst
Now the second question I have, when we were in Asia in
November we met with many of the suppliers, and your
customers and the upholstery guys over there, and the only
complaint they had was they couldn’t get enough product
from you, because they love the quality and the service, but
they felt that you didn’t have enough operations set up over
there. Can you just comment on that? The speed at which
you are moving?
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
We are in the process of starting construction on another
80,000 square foot addition to the facility in Jiaxing that you
toured. So we are adding capacity as quickly as we can.
Margaret Whelan - UBS - Analyst
Okay, and then would you be phasing out more capacity here
in the U.S. as you do that?
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
The tide has risen to a point, Margaret, that it has not been a
situation of lesser demand in the U.S. If there is a switch that
we have a facility in Australia that a good part of that business
has moved to China, so we are downsizing the Australian
mechanism facility, but not the U.S. facilities at all. They are
running full out as we speak.
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LEG - Q4 2003 Leggett & Platt Earnings Conference Call
Margaret Whelan - UBS - Analyst
Are the margins in China better than Australia?
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Yes.
Margaret Whelan - UBS - Analyst
And so net net, as you are moving your factories over there,
we would expect, you have this landed U.S./Asian made
product, we should expect the margins to be higher, right?
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Yes.
Margaret Whelan - UBS - Analyst
Okay, terrific. Congrats again, guys. Thank you very much.
Felix Wright - Leggett & Platt - Chairman and CEO
Thank you.
Karl Glassman - Leggett & Platt - EVP and Head of Residential
Furnishings
Thank you.
Operator
Thank you. Mr. DeSonier, there are no further questions at
this time. Please continue.
Dave DeSonier - Leggett & Platt - VP of IR
Okay, we appreciate your interest and hope to talk to you
again in a quarter. Thank you very much.
Felix Wright - Leggett & Platt - Chairman and CEO
Thank you.
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FINAL TRANSCRIPT
Operator
Thank you, sir. Ladies and gentlemen, this concludes the
Leggett and Platt fourth quarter 2003 earnings conference
call. If you would like to listen to a replay of today’s conference
call, please dial 303-590-3000 with pass code 565766. You
may now disconnect, and thank you for using ACT
Teleconferencing.
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