Leggett & Platt
From Wikipedia, the free encyclopedia
Leggett & Platt (L&P) (NYSE: LEG) is a Fortune 500 diversified manufacturer that conceives, designs and produces a broad variety of engineered components and products that can be found in virtually every home, office, retail store, and automobile. The company serves a broad suite of customers that comprise a "Who's Who" of U.S. manufacturers and retailers. The 124-year-old firm comprises 28 business units, 33,000 employee-partners, and more than 300 facilities located in over 20 countries.
Leggett & Platt is North America's leading independent manufacturer of:
- Components for residential furniture and mattress sets
- 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
- Carpet underlay
- Adjustable beds
- Bedding industry machinery
Contents |
[edit] Quick Facts
- Company headquarters in Carthage, Missouri
- Broad customer base; mainly manufacturers and retailers
- Few large competitors; almost none are public
- 5 Reporting Segments; 11 Groups; 28 Business Units
- 33,000 employee-partners
- More than 300 facilities in over 20 countries
- Dividend Track Record - 36 consecutive years of annual dividend increases
- 2006: Record Sales of $5.5 billion; 21% international
- 2006: Cash from Operations was $479 million, up 7% from 2005
- 2006: New CEO and COO (only the 4th CEO transition in 70 years)
- 2006: Renewed focus on innovation, product development, and growth
- 2008: Settled litigation over Station Nightclub fire in Rhode Island where foam possibly sold by L&P allegedly contributed to death of 100 people in 2003. See http://www.thebostonchannel.com/news/16242431/detail.html.
[edit] Segments
[edit] 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, and as the industry leader, it has continued to "reinvent" its bedspring to great commercial success. 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. For example, Leggett will often supply a bedding manufacturer with most components of a mattress and foundation. Leggett also provides a wide array of components for manufacturers of upholstered recliner chairs, sofas and loveseats.
- Major Product Groups
- Bedding components
- Furniture components
- Adjustable beds
- Ornamental beds
- Fabrics
- Carpet cushion
- Geo components
[edit] Commercial Fixturing & Components
The Commercial Fixturing & Components segment encompasses three areas. Leggett is the market leader in the design and production of store fixtures, point-of-purchase displays, and storage products used by retailers. In addition, Leggett is the leading independent producer of chair controls, bases and other components for office furniture manufacturers. Leggett also produces injection molded plastic components used in a wide variety of end products.
- Major Product Groups
- Shelving, racks, and display cases
- Point-of-purchase displays
- Chair controls and bases
- Plastic components
[edit] Aluminum Products
Leggett’s Aluminum group is the leading independent producer of non-automotive die castings in North America. Its components are used in a wide range of products across many industries. Major customers include manufacturers of motorcycles, small engines, electric motors, outdoor lighting, appliances, gas barbecue grills, power tools, consumer electronics, telecommunications, and other products that use aluminum, zinc and magnesium die cast components. In addition to die casting, Leggett offers additional processes such as machining, finishing, and assembly of components and sub-systems. Leggett also provides full service tool and die manufacturing to support customers’ tooling needs.
- Major Product Groups
- Aluminum die castings
- Magnesium and zinc die castings
- Tooling and dies
[edit] 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 (things like cotton bale ties, and boxed and shaped wire); equipment used for baling agricultural products and 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.
- Major Product Groups
- Steel wire
- Specialty wire products
- Coated wire products
- Wire retail fixtures and point-of-purchase displays
- Welded steel tubing
[edit] Specialized Products
This segment consists of three groups that design and produce:
- Lumbar systems and wire seating components sold primarily to automotive seating manufacturers
- Van interiors (racks, shelving and cabinets installed in service vans) and truck bodies (for cargo vans, flatbed trucks, service trucks, and dump trucks) used in light-to-medium duty commercial trucks, and sold primarily to truck manufacturers and dealers, fleet owners(typically utility, telecom, and other service and delivery companies), and other commercial end-users
- 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 and truck bodies
- Wire forming, quilting, and automation machinery
[edit] Recent Recognition
Leggett & Platt ranks within the Fortune 500. [1]
- #419 in Size (based upon 2006 revenues)
- #353 in Net Earnings
- #170 in Annual Return on Assets
- #212 in 10-year EPS growth
- #307 in 10-year Total Shareholder Return
Other Recognition
- Named to Standard & Poor's list of 2007 "Dividend Aristocrats"
- March 2007, again included in Fortune Magazine's list of America's Most Admired Companies
- Among the top 110 firms in the 2007 edition of Mergent's Dividend Achievers, as ranked by 10-year dividend growth rate
- Named to the 16th annual (2007 edition) "America's Finest Companies" investment directory
[edit] Leggett Management
As of August 2007, senior corporate executives included:
- David S. Haffner, CEO
- Karl G. Glassman, COO
- Matthew C. Flanigan, CFO
- David M. DeSonier, Strategy and Investor Relations
[edit] Board of Directors
| Director | Joined In | Position | Company |
|---|---|---|---|
| Raymond F. Bentele | 1995 | Retired CEO | Mallinckrodt |
| Ralph W. Clark | 2000 | Retired VP | IBM Corporation |
| Harry M. Cornell, Jr. | 1958 | Chairman Emeritus | Leggett & Platt |
| R. Ted Enloe, III | 1969 | Managing Partner | Balquita Partners |
| Richard T. Fisher | 1972 | Managing Director | CIBC World Markets |
| Karl G. Glassman | 2002 | COO | Leggett & Platt |
| David S. Haffner | 1995 | President & CEO | Leggett & Platt |
| Joseph W. McClanathan | 2005 | President & CEO | Energizer Battery |
| Judy C. Odom | 2002 | Former Chairman & CEO | Software Spectrum |
| Maurice E. Purnell, Jr. | 1988 | Partner | Locke Liddell & Sapp |
| Phoebe A. Wood | 2005 | Vice Chairman & CFO | Brown-Forman Corporation |
| Felix E. Wright | 1977 | Chairman | Leggett & Platt |
[edit] Company History
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 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 pocketed 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 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.
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.
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 25th, 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 over 300 manufacturing plants, distribution centers and other facilities in more than 20 countries. Employee-partners working in the various locations include 33,000 individuals – the people of Leggett & Platt are the company’s greatest asset.
[edit] 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.
- 2004: Revenues exceed $5 billion.
[edit] 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 |
[edit] 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
[edit] 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.[1] Major pollutants indicated by the study include sulfuric acid, nickel compounds, and diisocyanates.[2]
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]
[edit] References
[edit] External links
| Major North American mattress manufacturers |
|---|
|
Comfortaire - Dorel - King Koil - Restonic - Sealy - Select Comfort - Serta - Simmons - Spring Air - Tempur-Pedic - Therm-a-Rest - Leggett & Platt |
