Wall Street Transcript Interview with Susan R. McCoy, Staff VP of Investor Relations at Leggett & Platt, Incorporated (LEG)

Wall Street Transcript

67 WALL STREET, New York - April 11, 2014 - The Wall Street Transcript has just published its Building Materials, Residential Construction and Housing Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Construction Equipment Replacement Trends - Growth in Equipment Leasing Adoption Rates - Infrastructure Build in Emerging Markets - Energy Infrastructure Companies - Infrastructure Spending - Production Rates in Capital Goods - Opportunities in Domestic Shale Infrastructure - Increased Rental Demand

Companies include: Leggett & Platt (LEG) and many more.

In the following excerpt from the Building Materials, Residential Construction and Housing Report, the Staff VP of Investor Relations of Leggett & Platt, Incorporated (LEG) discusses company strategy and the outlook for this vital sector:

TWST: As you mentioned, you participate in several different end markets. What are your product leaders right now?

Ms. McCoy: We divide our business into four segments, 10 groups and 20 business units, each of which is relatively distinct. Our largest product families are some of the ones that I mentioned earlier. First is our bedding business. Our U.S. and international spring operations represent around 17% of our revenues. These are wire springs and components that we sell to companies that make mattresses and box springs here in the U.S. - as well as in Europe, Asia to a much lesser extent and also in parts of South America.

Another important business to us is our furniture components business. Products would include wire and steel components used in the production of upholstered furniture. Think of your couch or your chair at home. Under the upholstery, foam and filling material, there is an understructure or set of springs that's made of wire. There's a very good chance Leggett & Platt made that. If you also have a chair or sofa that has a reclining feature in it, where a foot rest rises and allows you to recline back, there is a very good chance that we would have made the steel components that enable that motion.

A third business that's very large and growing for us is automotive. Approximately 13% of our revenue comes from automotive and includes various components primarily used in automotive seating. These include lumbar supports that go into the seat back. If your car has a feature that enables you to push a button or turn a knob and create a different degree of support in your lower back, that's lumbar support. Most cars today have this feature. Leggett is the largest producer in the world of those assemblies.

Other products in automotive include wire forms that attach to the seat frame and become part of the seat suspension. We are also participating to a greater extent with small motors and cables, even outside of seating applications. Very small motors are utilized within the vehicle interior to create the convenience features that are becoming more common - such as power doors that...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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