|Standex Announces a Restructuring Charge|
SALEM, N.H.--(BUSINESS WIRE)--June 29, 2000--Standex International Corporation (NYSE:SXI) announced today that it will record a non-recurring charge of $5.4 million in its fourth quarter for a restructuring plan that involves the: (1) disposal, closing or elimination of certain under-performing and unprofitable operating plants, product lines, manufacturing processes and businesses; (2) realignment and consolidation of certain marketing and distribution activities; and (3) other cost containment actions, including selective personnel reductions. After an income tax benefit of $1.0 million, this plan will reduce earnings for the fourth quarter and the fiscal year ended June 30, 2000 by $4.4 million or $.35 per share, on a diluted basis.
President and CEO, Mr. Edward J. Trainor, explained that the restructuring is, in part, a response to relatively rapid changes in the market place for certain of our businesses and, in part, a continuance of the Company's strategy to refocus its resources into larger growth-oriented business units. Taking into account the income tax benefits, the restructuring actions are expected to generate positive net cash flows. Mr. Trainor said "The elimination of these plants, product lines and businesses should have a positive impact on future earnings." (1)
Standex International Corporation, with sales for the fiscal year ended June 30, 1999 of $641.6 million and operations in the United States, Western Europe, Canada, Australia, Singapore and Mexico, is a multi-industry manufacturer in three broad business segments: Food Service, Industrial and Consumer.
(1) The "forward looking" statements contained in this paragraph are necessarily dependent upon the timing of the completion of the actions and any unforeseen exit costs arising from these actions which could affect earnings.
CONTACT: Edward F. Paquette
Standex International Corporation