Jacuzzi (NYSE:JJZ)
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From Jun 2019 to Jun 2024
Jacuzzi Brands, Inc. (NYSE: JJZ), a leading global
producer of branded bath and plumbing products for the residential,
commercial and institutional markets, today announced that it would
consolidate its Bradford, U.K. ceramics production into its
Newcastle-Under-Lyme, U.K. facility and its outsourcing partners. The
Bradford facilities manufacture bath products including shower
enclosures, sanitary ware and acrylic baths.
This action, which was not included in our previously issued
earnings guidance for fiscal 2006, is part of Jacuzzi Brands' ongoing
initiatives to improve the overall operating performance of its Bath
Products business segment to meet its long term operating goals. The
Company does not anticipate any customer service disruptions during
this period.
The Company further stated that the costs of this consolidation
are expected to approximate $3.1 million or $0.02 per share, including
$1.3 million for anticipated severance and other cash expenses to be
classified as restructuring and $1.3 million in accelerated
depreciation and $0.5 million in inventory write-offs to be included
in cost of goods sold. These non-recurring charges will be taken
during the second, third and fourth quarters of fiscal 2006.
Management plans to complete this plant consolidation and integration
by fiscal year end. This action is not expected to have any effect on
the Company's operating income in fiscal 2006 after excluding the
non-recurring charges but is expected to improve operating income
beginning in fiscal 2007 by approximately $3.0 million per year.
Approximately 100 employees will be affected by this action.
Al Marini, President and Chief Operating Officer of Jacuzzi
Brands, Inc., said, "Jacuzzi Brands is committed to delivering maximum
value to shareholders, while at the same time delivering excellent
design and quality to our customers. While we regret the disruption to
the Bradford workforce, this consolidation is part of our ongoing plan
to remain competitive in the market place, improve efficiencies, and
mitigate the impact of rising raw material and energy costs."
Jacuzzi Brands, Inc., through its subsidiaries, is a global
manufacturer and distributor of branded bath and plumbing products for
the residential, commercial and institutional markets. These include
whirlpool baths, spas, showers, sanitary ware and bathtubs, as well as
professional grade drainage, water control, commercial faucets and
other plumbing products. Our products are marketed under our portfolio
of brand names, including JACUZZI(R), SUNDANCE(R), ZURN(R) and
ASTRACAST(R). Learn more at www.jacuzzibrands.com.
Disclosure Concerning Forward-Looking Statements
Any forward-looking statements made within this release including
the Company's current expectations with respect to future market
conditions, future operating results and other plans, represent
management's best judgment as to what may occur in the future and are
intended to fall within the meaning of the Private Securities
Litigation Reform Act of 1995. Words such as "expects," "intends,"
"plans," "projects," "believes," "estimates," "may," "will," "should,"
"shall," and similar expressions typically identify such
forward-looking statements. Even though the Company believes the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurance that its expectations
will be attained. In particular, various economic and competitive
factors, including those outside our control, such as interest rates,
foreign currency exchange rates, inflation rates, instability in
domestic and foreign financial markets, terrorist acts, consumer
spending patterns, energy costs and availability, freight costs,
availability of consumer and commercial credit, adverse weather,
levels of residential and commercial construction, and changes in raw
material and component costs, and the credit worthiness of our
customers, insurers, and investees, and other factors contained in the
Company's filings with the Securities and Exchange Commission could
cause our actual results during the remainder of 2006 and in the
future years to differ materially from those expressed in this press
release.