ROHN to Close Alabama Facility
Updated: Wednesday, October 16, 2002 03:57 PM ET
Exits Equipment Enclosure Business
PEORIA, Ill., Oct. 16 /PRNewswire-FirstCall/ -- ROHN Industries, Inc.
(Nasdaq: ROHN, news), a global provider of infrastructure equipment for the
telecommunications industry, announced today that in response to continued
reductions in customer capital spending it will close its manufacturing
facility in Bessemer, Alabama and exit the equipment enclosure business. The
Alabama plant closure will reduce the Company's workforce by approximately
100 positions. The Company anticipates that the plant closure will be
completed by December 31, 2002. The 250,000 square foot manufacturing
facility, which is located on 28 acres, will be offered for sale.
The closure of the Alabama facility and exiting the equipment enclosure
business will result in an estimated pre-tax charge of $10 to $12 million
and estimated one-time earnings per share charges of $.24 to $.29 in the
fourth quarter. On an after tax basis, these estimated charges will be $6 to
$7.5 million and $.15 to $.18 per share. This action is expected to reduce
the Company' annual operating costs by at least $1 million and is expected
to have a positive impact on the Company's 2003 results.
Brian B. Pemberton, President and CEO, stated, "The decision to close this
facility has been very difficult in light of its impact on our employees and
the Bessemer community. This decision has been dictated by the severe down
turn in the wireless and fiber optic industries that this facility serves."
Horace Ward, Senior Vice President and Chief Operating Officer, also stated,
"ROHN will continue to take actions that are necessary to bring our costs in
line with our current and expected levels of business. We will now focus our
efforts on enhancing the value of the Company's tower structures and
construction services business segments."
ROHN Industries, Inc. is a leading manufacturer and installer of
telecommunications infrastructure equipment for the wireless and fiber optic
industries. Its products are used in cellular, PCS, fiber optic networks for
the Internet, radio and television broadcast markets. The company's products
include towers, equipment enclosures, cabinets, poles and antennae mounts,
as well as design and construction services. ROHN has manufacturing
locations in Peoria, Ill.; Frankfort, Ind.; and Bessemer, Ala., along with a
sales office in Mexico City, Mexico.
Statements in this press release include "forward-looking statements" within
the meaning of the Securities Exchange Act of 1934, the Private Securities
Litigation Reform Act of 1995 and other related laws, and include, but are
not limited to, those statements relating to sales and earning expectations,
expected demand and other statements of outlook. The actual results and
effects could differ materially from those currently anticipated in our
forward-looking statements. Factors and risks that could cause such
differences include, but are not limited to: wireless and fiber optic
communications industry capital spending; the ability of our customers to
secure adequate financing; elections by customers to terminate or delay
previously placed orders; the effects of competition, particularly on
pricing and margins; our implementation of our growth objectives in foreign
markets; our indebtedness, which could restrict our operations, making us
more vulnerable to adverse economic conditions and making it more difficult
for us to implement our business strategy; liquidity problems that confront
or may confront us; our failure to enter into an amendment to our Credit
Agreement to waive or cure existing defaults thereunder; our inability to
obtain bonding required for certain customer contracts or potential
contracts; our Commonwealth of Pennsylvania construction project staying on
its currently anticipated schedule; and regulatory changes affecting our
industry. The cautionary statement contained in Exhibit 99.1 to ROHN's Form
10-K is incorporated herein by reference. Our forward-looking statements are
given as of the date of this release and we are not undertaking any duty or
obligation to update these statements publicly as a result of new
information, future events or otherwise.
Rohn Industries Reports Reports 3rd-Quarter Loss of 10 Cents a Share Dow
Jones - 11:18 AM EST
. ROHN Reports Third Quarter Financial Results PR Newswire - 09:06 AM EST
Fri Nov 01, 2002
. ROHN Signs Extension To Forbearance Pact Dow Jones - 10:30 AM EST
. ROHN Signs Extension to Forbearance Agreement PR Newswire - 08:59 AM EST
Wed Oct 16, 2002
. ROHN to Close Alabama Facility PR Newswire - 03:57 PM EDT
Mon Oct 14, 2002
. ROHN Completes Transfer From Nasdaq National Market To Nasdaq SmallCap
Market PR Newswire - 11:14 AM EDT
Tue Oct 08, 2002
. ROHN Announces Transfer From Nasdaq National Market to Nasdaq SmallCap
Market PR Newswire - 08:29 AM EDT
Mon Sep 23, 2002
. Pemberton Announces Planned Retirement from ROHN Industries, Board
Appoints Ward as Successor PR Newswire - 08:26 AM EDT
Fri Aug 30, 2002
. ROHN Signs Amendment to Credit and Forbearance Agreements PR Newswire -
12:54 PM EDT
Tue Aug 13, 2002
. ROHN Revises Previously Announced Second Quarter Net Earnings PR
Newswire - 08:15 AM EDT
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