J. Mitchell Dolloff
President and Chief Operating Officer at Leggett & Platt
Thank you, Karl, and good morning, everyone. First, I would like to thank our employees for leading us through another challenging quarter with great success. Your determination and agility helped us to navigate the material, labor and transportation issues that Karl mentioned, allowing us to better serve our valued customers. I greatly appreciate your commitment, ingenuity and forward-looking viewpoint. I'm proud to be a part of your team and have all that we've accomplished together.
Sales in our Bedding Products segment were up 13% versus the third quarter of 2020 and up 10% versus the third quarter of 2019, primarily from raw material related selling price increases from inflation in steel, chemicals and non-woven fabrics. Volume was down in both the one-year and two-year periods primarily due to chemical shortages, labor availability and transportation issues which continue to constrain U.S. mattress production, negatively impacting component demand in our finished goods production.
Availability of chemicals used in our specialty foam operation is slowly improving but remains challenging and dynamic. We import chemicals to supplement domestic supply, but port delays and logistics issues are limiting access to those products. We now see chemical challenges continuing into 2022. Our European bedding business softened during the third quarter as consumer demand return to more normalcy on our levels. In third quarter last year, market demand was very strong as OEMs and retailers built inventory and COVID restrictions began to ease. We anticipate long-term growth opportunities in Europe from the Kayfoam acquisition we completed in June. Similar to the trends we've seen in the U.S. bedding market over the past several years, European consumers are purchasing more mattresses online and in compressed form, increasing demand for specialty foam and hybrid mattresses. We are well positioned to support our branded mattress customers as a supply chain partner for components and private label finished mattress needs.
Adjusted EBITDA margins in the segment improved over third quarter 2019, primarily from expanded metal margins and our Steel Rod business and fixed cost actions taken last year. Margins were lower versus third quarter of 2020, primarily from lower volume, production inefficiencies -- production inefficiencies driven by supply chain constraints and higher freight costs. Sales in our specialized product segment were down 3% from third quarter 2020 and down 12% from third quarter 2019 due to lower volumes in automotive and aerospace, partially offset by growth in Hydraulic Cylinders.
In our automotive business, volumes were down -- volume was down over the one-year and two-year period. The semiconductor issues that have impacted many industries remain the major challenge for the automotive industry with global production forecast for the balance of 2021 declining dramatically this past quarter and again in October. Industry production was impacted to a much larger degree than expected with many OEMs reducing or completely shutting down production of some models for extended periods. Consumer demand remains strong and vehicle inventory remains at record low levels. Once supply chain stabilize, the industry should see improving production. Industry forecast indicate recovery starting in the back half of next year and continuing through 2023.
In our Aerospace business, demand for fabricated duct assemblies is near third quarter 2019 levels, but demand for welded and seamless tube products is still well below pre-pandemic levels. With the lingering impact from pandemic related disruption in air travel and resulting buildup of aircraft and supply chain inventories, the industry is not anticipated to return to 2019 demand levels until 2024. End market demand in Hydraulic Cylinders is very strong and order backlogs continue to grow. However, global supply chain constraints and labor availability has hampered the ability of our OEM customers to ramp up production. We expect our sales to increase as OEM production increases, but supply chain constraints in this business could persist into 2022. EBITDA margins in the segment declined over the one-year and two-year period, primarily from lower volume, partially offset by fixed cost actions taken last year.
Sales in our Furniture Flooring and Textiles product segment were up 12% versus third quarter 2020 and up 13% versus third quarter 2019, primarily from raw material related selling price increases and demand strength in home furniture. We expect strong demand in our home furniture business for the remainder of the year and into 2022. While demand remains below 2019 levels, Work Furniture sales continued sequential improvement for the fifth consecutive quarter, with strong demand from products sold to residential use and improving demand in the contract market.
Volume was down in our Geo components business as retail activity returned to more normalized levels after a surge in demand last year from the consumers focus on home improvements. Volume was also down in Fabric Converting due to the non-recurrence of the surge in medical and filtration sales last year. In Flooring products, residential end market demand is above pre-pandemic levels, Whereas hospitality demand remains well below 2019 levels. Volume was down in the quarter due to limited chemical supply, labor availability and transportation disruptions.
Adjusted EBITDA margins in the segment improved over the third quarter of 2019, primarily from improvements in our home furniture business and fixed cost actions taken last year. Margins were lower versus third quarter 2020 primarily from lower volume. Overall, the fixed cost actions we took last year reduced our third quarter costs by approximately $20 million versus the third quarter of 2019. Across all of our businesses, we remain focused on controlling our costs by only adding fixed cost as necessary to support higher volumes and future growth opportunities. With fluctuating demand and limited labor availability, we are making short-term investments to attract and retrain -- retain our labor force.
We have rebuilt inventory in our Steel Rod, Drawn Wire in US Spring business following severe depletion in 2020 and our holding slightly higher levels of inventory -- in inventory in order to meet anticipated customer demand as foam and labor availability improves across the industry. We will take our rod mill out of operation for approximately three weeks near the end of this year to replace the reheat furnace and are holding additional safety stock as a precautionary measure. As a result, higher levels of inventory in these businesses are expected through the remainder of the year and will likely alter our normal seasonal cash flow cycle to some degree.
I'll now turn the call over to Jeff.