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04 Annual Report >> Segment Review : Residential | Commercial | Aluminum | Industrial | Specialized   Glossary

Specialized Products     Specialized products are concentrated in two areas. First, Leggett is the leading designer and worldwide manufacturer of lumbar systems and wire seating components, sold primarily to automotive seating manufacturers. In the second area, we are global leaders in design and production of state-of-the-art machinery and equipment, both for our own use and for other manufacturers. These products include wire forming equipment, industrial quilting and sewing machinery, and other automation equipment. External machinery customers are primarily bedding manufacturers and makers of home accessories. Competitive Advantages Our automotive businesses are innovation leaders, focused on product development and cost reduction. We are the low-cost producer due to our continuous improvement programs, worldwide supply sources, and internal production of certain materials and components. Leggett’s financial strength enables us to assist customers with supply chain management, thereby reducing their costs. Our machinery operations, with more than 100 years of engineering experience, are recognized as the industry’s technical and design leader. We have an extensive network of offices and agents that provide unparalleled sales, service, and parts support worldwide. Key Strategies In our automotive operations, we will continue the focus on research and development, looking for ways to improve the function and cost of our products. The introduction of new products allows us to expand into new markets. Growing our global presence (to serve developing markets and to expand our sourcing options) will remain a priority, as will assisting our customers with vendor consolidation (to reduce the complexity and cost of their supply chain). Our machinery businesses design and manufacture equipment that is used to produce the proprietary innerspring products we develop for our bedding customers. In most cases, the equipment we produce is not otherwise available in the marketplace. Providing proprietary machinery is a critical function of our machinery businesses, and a key factor contributing to the success of our bedding operations. In addition, we will continue to develop technology to improve efficiency in our own plants and our customers’ operations. Major Product Groups • Automotive seating components • Lumbar systems • Power train and control cables • Machinery for wire forming, quilting, and automation