We were founded as a partnership in Carthage, Missouri in 1883 and became incorporated
in 1901. The Company, a pioneer in the development of steel coil bedsprings, is
a diversified manufacturer that conceives, designs and produces a wide range of
engineered components and products that can be found in many homes, offices, retail
stores and automobiles. Our business is organized into 29 business units, those
units organized into 11 groups, and those groups into five segments.
We believe we are the largest independent manufacturer in North America of
the following:
Components for residential furniture and bedding
Retail store fixtures and point-of-purchase displays
Components for office furniture
Non-automotive aluminum die castings
Drawn steel wire
Automotive seat support and lumbar systems
Bedding industry machinery for wire forming, sewing and quilting
Distribution of Products
Our products are sold and distributed primarily through the Company’s sales
personnel. However, many of our businesses have relationships and agreements
with sales representatives and distributors. We do not believe any of these
agreements or relationships would, if terminated, have a material adverse effect
on the consolidated financial condition or results of operations of the Company.
Raw Materials
We use a variety of raw materials in manufacturing our products. Some of the
most important raw materials include:
Steel scrap
Steel rod
Woven and non-woven fabrics
Aluminum
Angle iron
Coil and sheet steel
Rough green lumber
Textile scrap
Foam chemicals and foam scrap
Plastic resin
The raw materials for many of our businesses are supplied by our own facilities.
For example, steel rod is used to produce steel wire, which we use to produce
innersprings and box springs for mattresses; displays, shelving and racks for
retail customers; and automotive seating systems. Our own wire drawing mills
supply nearly all of our requirements for steel wire. The steel rod produced
at our rod mill in Sterling, Illinois currently supplies roughly half of our
current rod requirements. We also produce welded steel tubing and dimension
lumber both for our own consumption and for sale to customers outside the Company.
Customers
We serve thousands of customers worldwide, sustaining many long-standing business
relationships. No single customer accounted for more than five percent (5%)
of the Company’s consolidated revenues.
The majority of our international operations, measured by trade sales, are
in Canada, Europe and Mexico.
The Canadian operations primarily manufacture innersprings for mattresses,
fabricated wire for the bedding, furniture and automotive industries, and cut-to-size
bed frame lumber. We manufacture shelving for retailers, wire and steel storage
systems and racks for the interior of service vans and utility vehicles, point-of-purchase
displays for retailers, as well as chair frames and bases, table bases and office
chair controls, and plastic injection moldings. We also make lumbar supports
for automotive seats and other automotive and furniture seat components.
Our foreign operations in Europe produce, among other things, innersprings
for mattresses, fabric for industrial and residential uses, various wire products,
office chair mechanisms and automotive lumbar seating systems. We also sell
machinery and equipment designed to manufacture innersprings for mattresses
and other bedding related components. Finally, we have one operation in Europe
that designs and distributes point-of-purchase displays for retailers.
The Mexican operations primarily manufacture innersprings and wire grid tops
for mattresses, fabricated wire for the bedding industry, and fabric for industrial
and residential uses. We produce aluminum die castings and provide machining,
sub-assembly and other value added services related to aluminum die castings.
We also produce commercial shelving, material handling equipment, and automotive
control cable systems.
Competition
Many companies offer products that compete with those manufactured and sold
by Leggett. The number of competing companies varies by product line, but the
markets for our products are highly competitive in all aspects. A number of
our customers manufacture components similar to ours for their own use. The
primary competitive factors in our business include price, product quality and
innovation, and customer service.
In certain of our markets a portion of U.S. manufacturing is moving overseas.
We face increasing competition from foreign competitors, especially those in
Asia who supply component parts to our customers’ Chinese and Asian manufacturing
facilities. We have, and continue to develop, significant Asian supply sources.
We also have, and continue to develop, a manufacturing presence in Asia. Our
Asian facilities manufacture products for Asian markets as well as for our customers
in other parts of the world.
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