|Standex Unit to Close Its Roll-Tech Plant in Germany|
Company will Continue German Mold Texturizing Businesses and Consolidate Roll Technology Operations in the U.S. and South America; Standex Provides Update on Its Corporate Realignment Program
SALEM, N.H.--(BUSINESS WIRE)--Oct. 20, 2003--Standex International (NYSE: SXI) today announced that its German subsidiary, Standex International GmbH, would close the roll technology business located in Krefeld, Germany. The termination of the German roll technology operations is expected to be substantially completed by the end of calendar 2003. It will have no affect on the Company's Mold-Tech(R) and Procon divisions' operations, which are also located in the Krefeld facility.
"Standex Engraving's worldwide operations offer industrial engraving and texturizing services to multinational customers with the assurance that manufactured parts have the same high quality surface finish irrespective of where they are produced," said Roger Fix, president and CEO of Standex. "Our roll technology operation in Germany has not been profitable for the past several years largely because the business lacks the scale to compete effectively with its two largest competitors in the European market, both of which are headquartered in Germany. Therefore, we are consolidating our German roll engraving activities into our North and South America facilities, where our leading digital technologies have been developed. The two mold texturizing facilities in Germany will continue to service key automotive customers and support the German manufacturing community."
Fix added, "We are recognizing a one-time pretax charge of approximately $1.07 million for the loss on this disposition in the first quarter of our fiscal year 2004. The savings resulting from this action are expected to yield a payback of just over one year."(1)
Standex's recent acquisitions of IR International, Inc. in Richmond, Virginia and Dornbusch & cia located in Sao Paolo, Brazil established Standex Engraving as the leader in the U.S. and South America roll technology markets, complementing its leadership in mold texturizing technology. IR International and Dornbusch had combined revenues of $16 million for the year ended June 30, 2003.
Comments on Standex's Realignment and Restructuring Program
"Consolidating the German roll technology business in the U.S. and South America furthers the progress of Standex's corporate-wide realignment and restructuring program that the Company has been successfully implementing during the past 12 months," said Fix. "When we announced the program, we indicated that we would be divesting under-performing businesses and consolidating others. As part of that process, we have closed operations and sold off assets over time to realize greater returns from the realignment initiatives. For example, in May we announced the closing of the H.F. Coors division and the sale of the land and the building. In a separate transaction, we sold the Coors business assets to a restaurant china manufacturer. In a similar fashion, the sale of Roll Technology's customer list and other related assets are currently under consideration."
About the Standex Engraving Division
The Standex Engraving Division operates 21 worldwide plants with four licensees and is the major industrial engraving company to supply textures for automotive parts, architectural products, tissue and toweling, electronic casings and consumer products. Over the past several years, Standex has made a significant investment in developing market-leading technology that allows Standex Engraving to digitize existing grains and develop new grains through computer-driven technology. By utilizing laser engraving, computer rendering and other technology-driven surface finishing processes, Standex Engraving has been able to reduce the cost and time required to place grains and textured finishes on molds and rolls used by its customers. This new technology has significantly reduced the design and production time for texturizing, improved the quality and appearance of the textures and reduced costs. The Standex Engraving Division combines the experience of proven industry leaders such as Roehlen Engraving(R), IR International, Dornbusch Brazil, Eastern Engraving, BF Perkins(R), Mold-Tech(R) and Mullen Testers(R). For more information about the Standex Engraving Division, visit the Company's Web site at www.standexengraving.com.
Standex International Corporation is a multi-industry manufacturer in three broad business segments: Food Service, Industrial and Consumer with operations in the United States, Europe, Canada, Australia, Singapore, Mexico, Brazil and China. For additional information, visit the Company's Web site at www.standex.com.
(1)These statements are forward looking and involve certain risks, uncertainties and assumptions. Factors affecting the outcome and results include failure to achieve the Company's acquisition and restructuring goals, uncertainties in the economy, competitor activities, changes in economic growth and demands in domestic and international markets, pricing pressures and other market factors. Actual results could differ materially from anticipated projected results.
CONTACT: Standex International Christian Storch, 603-893-9701 email@example.com or Sharon Merrill Associates, Inc. Timothy D. Green, 617-542-5300 firstname.lastname@example.org SOURCE: Standex International