MUSCATINE, Iowa, April 30 /PRNewswire/ -- HON INDUSTRIES Inc. (NYSE: HNI)
formed its Wood Products Group last year to improve profitability and increase
long-term shareholder value. Since then, the Wood Products Group has focused
on simplifying its business and the efficient use of capital.
"We have been working to streamline our assets to strengthen our
competitive advantage in the markets we serve," said Jack D. Michaels, HON
INDUSTRIES' Chairman, President and CEO. "This allows us to increase capacity
utilization across all of our wood products facilities." As a result of this
work, the Company is announcing today that it will consolidate the wood office
furniture production from its Williamsport, Penn., facility into other
manufacturing locations.
The Williamsport operation will close following an orderly transition of
production to other facilities. Plans are in place to complete these moves in
the second and third quarters of 2001. "We are working closely with the
members affected by this change to help them find new jobs," stated Mr.
Michaels.
This operations realignment is expected to save an estimated $4.0 million
on an annualized basis. The one-time charge to pre-tax earnings is estimated
to be approximately $2.5 million. This strategic realignment will reduce
manufacturing and distribution costs and further improve our record-setting
service levels to our customers.
"These on-going actions focus on our new product development, and cost
reduction initiatives that will continue to improve our long-term
profitability and return on invested capital. This will make our wood
operations stronger for the future," stated Mr. Michaels.
HON INDUSTRIES Inc. is the nation's largest producer of value-priced
office furniture, and the fourth largest manufacturer and marketer of office
furniture in the U.S. It is also the nation's largest manufacturer and
marketer of gas and wood burning fireplaces. HON INDUSTRIES' common stock is
traded on the New York Stock Exchange under the symbol HNI.
Forward-looking Statements
Statements in this news release that are not strictly historical,
including statements as to plans, objectives, and future financial
performance, are "forward-looking" statements that are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements involve known and unknown risks, which may
cause the Company's actual results in the future to differ materially from
expected results, particularly those with respect to expected earnings for the
remainder of the fiscal year. These risks include, among others: the
Company's ability to realize financial benefits from reducing its cost
structure, to achieve expected financial benefit from its wood products group,
to introduce and obtain sales from new products; and other factors described
in the Company's annual and quarterly reports filed with the Securities and
Exchange Commission on Forms 10-K and 10-Q.
For more information, contact Jerald K. Dittmer, Vice President, Finance,
563-264-7400, Jeffrey D. Fick, Vice President, Member and Community Relations,
563-264-7091, or James P. McKeone, Investor Relations Manager, 563-264-7669,
all of HON INDUSTRIES Inc.
SOURCE HON INDUSTRIES Inc.
CONTACT: Jerald K. Dittmer, Vice President, Finance, 563-264-7400,
Jeffrey D. Fick, Vice President, Member and Community Relations, 563-264-7091,
or James P. McKeone, Investor Relations Manager, 563-264-7669, all of HON
