Leggett & Platt

Leggett & Platt

Type	Public (NYSE: LEG) S&P 500 Component
Industry	Home Furnishings & Fixtures Industrial Materials
Founded	1883
Headquarters	Carthage, Missouri, USA
Key people	David S. Haffner, CEO & President
Revenue	$3.359 billion USD (2010)
Operating income	$288 million USD (2010)
Net income	$177 million USD (2010)
Employees	19,000 (2010)

Leggett & Platt (L&P) (NYSE: LEG), based in Carthage, Missouri, is a diversified manufacturer (and member of the S&P 500 Index) that conceives, designs and produces a broad variety of engineered components and products that can be found in most homes, offices, and automobiles. The company serves a broad suite of customers that comprise a "Who's Who" of U.S. manufacturers and retailers. The 128-year-old firm consists of 19 business units, 19,000 employee-partners, and 140 manufacturing facilities located in 18 countries.

Leggett & Platt is the leading U.S. manufacturer of:

• Components for residential furniture and bedding
• Components for office furniture
• Drawn steel wire
• Automotive seat support and lumbar systems
• Carpet underlay
• Power foundations
• Bedding industry machinery

Company Segments

Residential Furnishings

The Residential Furnishings segment began with an 1885 patent of the steel coil bedspring. Leggett & Platt had invented the bedspring with which it launched the U.S. bedspring industry. Leggett has since been a driving force for continued bedspring development and industry growth. Today, Leggett supplies a variety of components used by bedding and upholstered furniture manufacturers in the assembly of their finished products. Some of the major product groups in this division are bedding and furniture components, adjustable and ornamental beds, fabrics, carpet cushioning, and Geo components.

Commercial Fixturing & Components

The Commercial Fixturing & Components segment encompasses two primary areas. Leggett is a leader in the design and production of store fixtures used by retailers. In addition, Leggett is the leading independent producer of chair controls, bases and other components for office furniture manufacturers. In this project segment, the major products are; shelving, racks, and display cases, and chair controls and bases.

Industrial Materials

Leggett & Platt is North America’s leading supplier of drawn steel wire and a major producer of welded steel tubing. About half of the wire it produces and roughly one-quarter of its tubing is used by other Leggett businesses. Other customers include bedding and furniture makers, mechanical spring producers, and automotive seat manufacturers. Leggett's businesses also produce specialty wire products (e.g. boxed and shaped wire); equipment used for baling recyclable waste; coated wire dishwasher racks and coated wire products for other industries; and wire retail fixtures and point-of-purchase displays. Leggett also cuts, forms, and bends steel tubing used for automotive seat frames and other components.

Specialized Products

This segment consists of three groups that design and produce:

• Lumbar systems and wire seating components sold primarily to automotive seating manufacturers
• Commercial vehicle products (van interiors, racks, storage equipment, and computer docking stations installed in service vans) sold primarily to fleet owners (typically utility, telecom, and other service and delivery companies)
• Wire forming equipment, industrial quilting and sewing machinery, and other automation equipment, both for our own use and for external customers (primarily bedding manufacturers)

Major Product Groups

• Lumbar systems and other automotive seating components
• Service van interiors
• Wire forming, quilting, and automation machinery

Recent Recognition

• Included among Standard & Poor's "Dividend Aristocrats"; possess 13th longest string of annual dividend increases
• Among the top firms in Mergent's Dividend Achievers
• One of "America's Finest Companies" according to the Staton Institute

Leggett Management

As of December 2010, senior corporate executives included:

• David S. Haffner, CEO
• Karl G. Glassman, COO
• Matthew C. Flanigan, CFO
• David M. DeSonier, Strategy and Investor Relations

Board of directors

Director	Joined In	Position	Company
Robert E. Brunner	2009	EVP	Illinois Tool Works, Inc.
Ralph W. Clark	2000	Retired Executive	IBM Corporation
R. Ted Enloe, III	1969	Managing General Partner	Balquita Partners, Ltd.
Richard T. Fisher	1972	Sr. Managing Director	Midwest Div., Oppenheimer & Co.
Matthew C. Flanigan	2010	CFO	Leggett & Platt
Karl G. Glassman	2002	COO	Leggett & Platt
Ray A. Griffith	2010	President & CEO	Ace Hardware Corp.
David S. Haffner	1995	President & CEO	Leggett & Platt
Joseph W. McClanathan	2005	President & CEO	Energizer Household Products Div. of Energizer Holdings, Inc.
Judy C. Odom	2002	Former Chmn, CEO	Software Spectrum, Inc.
Maurice E. Purnell, Jr.	1988	Of Counsel	Locke Lord Bissell & Liddell LLP
Phoebe A. Wood	2005	Retired Vice Chmn, CFO	Brown-Forman Corporation

Company history

J.P. Leggett

C.B. Platt

In 1883 in Carthage, Missouri, far removed from any major metropolitan or urban areas, a historical partnership began. J.P. Leggett, an inventor, initiated the partnership because he had developed an innovative bedspring. Mr. Leggett’s bedspring consisted of single cone spring wire coils, formed and interlaced in a unique manner, then mounted on a wood slat base. The bedspring could then be used as a resilient, durable base for the then-popular cotton, feather or horsehair mattresses. Needing expertise in manufacturing and production, he recruited his soon-to-be brother-in-law, C.B. Platt, whose father owned and operated Platt Plow Works, into the partnership. Together, they perfected the equipment necessary to produce the components of their Leggett & Platt bedspring, which was patented in 1885.

Bedspring vs. Innerspring
At the time of their invention, bedsprings referred to cone-shaped wire coiled springs, attached to a wooden slat foundation, used to support then-popular mattresses. These mattresses were typically made of horse hair, corn husks, cotton, feathers, or another soft material. Early bedsprings functioned similarly to today's box springs in their support of a mattress. However, box springs are rather rigid in structure, while bedsprings provide a more flexible surface.
Innersprings, by contrast, refer to the core system of wire springs that, along with various types of foam and other padding materials, comprise the insides of today's mattress. The mattress is usually coupled with a box spring to create a sleep set. Innersprings can be coiled springs laced together, continuous coil springs, or individually encased springs, that support a person sleeping on the mattress.

The Carthage market for their new product was very limited. To expand the market to a wider region, Mr. Platt and George Leggett, brother of J. P. Leggett, would load a horse-drawn wagon with bedsprings and travel to surrounding communities. Often, to conserve space, they would load the springs and slats separately into the wagon and assemble them in a store or on an adjacent sidewalk. The partnership prospered, and the business was incorporated in 1901.

The Platt Plow Works

The company built its first factory and offices in Carthage in 1895. The workforce at that time consisted of the two partners and five employees. Soon after completion of the Carthage plant, a second factory was built in Louisville, Kentucky. During the next 50 years, three more factories were built. Demand for the company’s improved bedsprings was rising, and a second plant was built in Carthage in 1925. The new, much larger plant was located next to a railroad to allow for expanded shipments of products and supplies. In 1942, an additional factory was built in Winchester, Kentucky, which was subsequently consolidated with the Louisville plant. For some time, Texas had proven to be a main market outlet, and in 1947, a major factory was built in Ennis, Texas. By 1947, Leggett & Platt consisted of 4 plants and 500 employees.

Although available in various models and continuously improved upon, bedsprings were practically the only product Leggett & Platt offered until 1933. However, in that year the company began to manufacture springs for innerspring mattresses, which were relatively new products in the industry and growing in popularity. Thereafter, the company slowly began to diversify its products within the bedding industry by producing rollaway beds and folding metal cots, along with bed frames and bed rails.

Innerspring mattress components

In 1960, Harry M. Cornell Jr., J.P. Leggett’s grandson, was elected President and CEO of the company, taking over for his father (who was Mr. Leggett’s son-in-law). The company’s total sales in 1960 were approximately $7 million from three states – Kentucky, Texas and Missouri. Determining the course and future of the company became management’s primary objective. Following an extensive evaluation of the company and its potential, Mr. Cornell and his management partners concluded that Leggett & Platt’s best opportunities for profitable growth lay in a strategy of specializing in manufacturing, marketing, and distributing a broad and growing line of components and related products, first nationally and eventually on a world-wide basis. Key drivers of future sales and earnings would include aggressive internal growth initiatives, coupled with an active and ongoing acquisition program.

J.P. Leggett's original bedspring and patent

Even greater success followed, and Leggett & Platt became known as “the components people.” Leggett & Platt stock was first traded over the counter in 1967. Twelve years later, on June 25, 1979, top management was present in New York City to witness the stock’s first day listed on the New York Stock Exchange. In 1985, Leggett & Platt grew into the Fortune 500 list of the largest U.S.-based manufacturing companies. In 1999, the company became part of the S&P 500 Index.

Today, Leggett & Platt products can be found nearly everywhere. Its operations encompass 140 manufacturing facilities in 18 countries. Employee-partners working in the various locations include 19,000 individuals – the people of Leggett & Platt are the company’s greatest asset.

Timeline of Significant Events

• 1883: Joseph P. Leggett develops and patents the first successful spiral steel coil bedspring, then forms a business partnership with Cornelius B. Platt, a blacksmith who operates the C.D. Platt Plow Works plant in Carthage, Missouri.
• 1885: Leggett receives a patent for improvements on the coiled bedspring. J.P. Leggett and C.B. Platt begin manufacturing coiled bedsprings at the Platt Plow Works plant.
• 1895: The first factory and offices are built in Carthage, MO. The workforce consists of the 2 partners and 5 employees. Harry Platt, a brother of C.B. Platt, opens a franchise factory in Louisville, Kentucky.
• 1901: The partnership of J.P. Leggett and C.B. Platt is incorporated under the name “Leggett & Platt Spring Bed & Manufacturing Company.”
• 1933: Leggett & Platt begins to manufacture innerspring units at its Carthage plant.
• 1942: Leggett & Platt survives World War II by working on defense contracts.
• 1960: Harry M. Cornell, Jr., (grandson of J.P. Leggett) becomes president and CEO; he begins implementing a new corporate strategy to broaden the line of component products for the bedding and furniture industries, expand geographically, and offer compatible products directly to furniture stores.
• 1967: Leggett & Platt’s IPO (initial public offering) of 50,000 shares of stock (at $10 per share) and $1 million of convertible subordinated debentures, occurs; the stock is listed over the counter.
• 1971: Leggett & Platt stock is listed on the NASDAQ, and the company achieves more than $1 million in net earnings.
• 1976: Leggett & Platt exceeds the $100 million sales mark for the first time.
• 1977: Construction begins on a new corporate headquarters outside Carthage.
• 1979: Leggett & Platt is listed on the NYSE (New York Stock Exchange), stock symbol "LEG"
• 1983: Leggett celebrates 100 years of operation.
• 1985: Leggett is first added to the Fortune 500 list of largest U.S. manufacturing companies.
• 1990: Revenues exceed $1 billion for the first time.
• 1998: Leggett & Platt becomes part of the Fortune 500 list of largest U.S. companies, across all industries.
• 1999: Leggett is included in the S&P 500.
• 2007: New strategic direction announced in November.
• 2008: Company divests nearly 20% of its revenue base, including its Aluminum Products segment.

Executive Leadership: Past & Present

Executive	Years of Service
J.P. Leggett & C.B. Platt, Partnership	1883–1901
J.P. Leggett	1901–1921
C.B. Platt	1921–1929
J.P. Leggett, Jr.	1929–1933
F.B. Williams	1933–1938
George S. Beimdiek, Sr.	1938–1953
Harry M. Cornell, Sr.	1953–1960
Harry M. Cornell, Jr.	1960–1999
Felix E. Wright	1999–2006
David S. Haffner	2006–Present

LEG Stock

• 1967 - Leggett & Platt IPO of 50,000 shares of stock at a price of $10 per share; the stock is traded over the counter
• 1971 - Leggett's stock is listed on the NASDAQ
• 1979 - Leggett is listed on the New York Stock Exchange, trading under symbol "LEG"

History of Stock Splits:

• May 13, 1969: 5-for-3
• Jan. 15, 1973: 3-for-2
• Sept. 29, 1978: 3-for-2
• Aug. 26, 1983: 2-for-1
• Mar. 14, 1986: 3-for-2
• Jun. 15, 1992: 2-for-1
• Sept. 15, 1995: 2-for-1
• Jun. 15, 1998: 2-for-1

Environmental Record

Researchers at the University of Massachusetts Amherst have identified Leggett & Platt as the 54th-largest corporate producer of air pollution in the United States, with roughly 150,000 pounds of toxic chemicals released annually into the air. Major pollutants indicated by the study include sulfuric acid, nickel compounds, and diisocyanates.

In 2007, Leggett & Platt’s corporate office indicated that the US EPA Toxic Chemical Release Data used by researchers at the University of Massachusetts Amherst (and referenced above) is from the year 2000. Data for 2006 shows total on-site air releases from the Leggett & Platt facilities listed in the 2000 report have declined by more than 90% since 2000^{[citation needed]}, to less than 2,500 pounds^{[citation needed]}. These reductions resulted, in part, from the following action by Leggett & Platt over the past seven years: a) removal of the sulfuric acid cleaning operation and nickel plating bath at Talbot Industries;^{[citation needed]} b) replacement of methylene chloride at polyurethane foam plants with a Cardio process that uses carbon dioxide as a blowing agent; c) installation of powder paint lines and low VOC paint systems to replace solvent coating operations;^{[citation needed]} and d) use of low VOC and water based cleaning solvents at Pulsar Plastics rather than methyl ethyl ketone.^{[citation needed]}

External links

• L&P's Homepage
• L&P Corporate Overview
• L&P's Adjustable Beds Homepage