TRADING SYMBOL: Toronto Stock Exchange - HWD
LANGLEY, BC, Nov. 21, 2016 / CNW/ - Hardwoods Distribution
Inc. ("Hardwoods" or the "Company") today announced that on
November 18, 2016 a trade petition
was filed in the United States
with respect to imported hardwood plywood from China (the "Petition").
The action was filed by a group of U.S. manufacturers of
hardwood and decorative plywood (the "Petitioners"). The Petition,
filed with the U.S. Department of Commerce and the U.S.
International Trade Commission, alleges that imports of Chinese
manufactured hardwood plywood are sold in the United States at prices below cost, and
are subsidized by the Government of China. The Petition claims that U.S.
manufacturers of hardwood and decorative plywood have suffered
material competitive injury and requests that the U.S. Government
investigate whether antidumping and countervailing duties should be
applied against the value of imported hardwood plywood originating
from China.
This is the second trade case initiated by the
Petitioners. The original trade case, which was filed on
September 27, 2012, was dismissed on
November 5, 2013 by the U.S.
International Trade Commission ("ITC"). The Petitioners
appealed the ITC's decision in the original trade case to the U.S.
Court of International Trade, however that appeal was extinguished
on September 19, 2016.
Hardwoods sells a wide range of architectural building products
to customers in North America,
including hardwood plywood products. Hardwoods strategy for
the hardwood plywood product category includes selling both
imported and domestically produced hardwood plywood, in order to
satisfy the demand and diverse product preferences of its
customers.
In the event that trade duties were levied against Chinese
hardwood plywood, this would impact the market for hardwood plywood
in the United States. These impacts could include significant
changes to the selling prices, margins, and/or product supply
availability of both imported and domestically manufactured
hardwood plywood. However the Company estimates
that after considering the recent acquisition of Rugby
Architectural Building Products which was completed in July 2016, the proportion of its total sales
falling within the scope of this trade case is less than 11% of
annual revenues.
"We will closely monitor the situation and make adjustments to
our product sourcing that arise as a result of developments in this
new trade case," said Rob Brown,
President and CEO of Hardwoods. "Our focus will
continue to be on successfully meeting the ongoing product needs of
our customers."
About Hardwoods Distribution Inc.
Hardwoods is North America's
largest distributor of high-grade hardwood lumber, sheet goods,
architectural millwork and non-structural architectural grade
building products to the residential and commercial construction
markets. The Company operates a North American network of 60
distribution centres, as well as one sawmill and kiln drying
operation.
Forward-Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
This news release includes forward-looking statements. These
involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements or
industry results to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. These forward-looking statements are
identified by the use of terms and phrases such as "anticipate",
"believe", "estimate", "expect", "may", "plan", "will", and similar
terms and phrases, including references to assumptions. Such
statements may involve, but are not limited to: in the event
that trade duties were levied against Chinese hardwood plywood,
this would impact upon the market for hardwood plywood in the
United States; these impacts could include significant
changes to the selling prices, margins, and/or product supply
availability of both imported and domestically manufactured
hardwood plywood; and the Company estimates that including the
acquisition of Rugby Architectural Building Products which was
completed in July 2016, the
proportion of its total sales falling within the scope of the US
trade case against Chinese hardwood plywood is less than 11%.
These forward-looking statements reflect current expectations of
management regarding future events and operating performance as of
the date of this news release. Forward-looking statements involve
significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results
will be achieved. A number of factors could cause actual results to
differ materially from the results discussed in the forward-looking
statements, including, but not limited to: national and local
business conditions; political or economic instability in local
markets; competition; consumer preferences; spending patterns and
demographic trends; legislation or governmental regulation;
acquisition and integration risks.
Although the forward-looking statements contained in this news
release are based upon what management believes to be reasonable
assumptions, management cannot assure investors that actual results
will be consistent with these forward-looking statements. The
forward-looking statements reflect management's current beliefs and
are based on information currently available.
All forward-looking information in this news release is
qualified in its entirety by this cautionary statement and, except
as may be required by law, Hardwoods undertakes no obligation to
revise or update any forward-looking information as a result of new
information, future events or otherwise after the date hereof.
SOURCE Hardwoods Distribution Inc.