Quanex to Restructure and Sell Its Piper Impact Business
March 31 2004 - 1:39PM
PR Newswire (US)
Quanex to Restructure and Sell Its Piper Impact Business HOUSTON,
March 31 /PRNewswire-FirstCall/ -- Quanex Corporation announced
today that it has completed a strategic review of its Piper Impact
division located in New Albany,Mississippi. As a result of that
review, a decision has been made to consolidate Piper's production
into a single facility from the two facilities operating today. The
strategic review also calls for the sale of Piper Impact, which
Quanex anticipateswill be completed within one year. The expected
sale of the division could produce an after-tax book write-off of
approximately $5 million to $10 million and positive cash flow of
approximately $20 million to $25 million, resulting primarily from
the accelerated write-off of Piper's tax goodwill. The Company
indicated that while Piper Impact continues to generate positive
cash flow, it is necessary to idle one of the division's two
facilities because of the ongoing drop in business with its major
automotive and ordnance customers. Going forward, Piper will
concentrate on promising, high growth market opportunities;
however, their market focus will no longer align with Quanex's
strategic direction of serving the vehicular products and building
products markets and therefore, the division will be sold. Quanex
is a $1.3 billion industry-leading manufacturer of value-added
engineered materials and components serving the vehicular products
and building products markets. For further information about
Quanex, visit the Company's website at http://www.quanex.com/ .
Statements that use the words "expect," "should," "will," "could,"
"might," or similar words reflecting future expectations or beliefs
are forward-looking statements. The statements found above are
based on current expectations. Actual results or events may differ
materially from this release. Factors that could impact future
results may include, without limitation, the effect of both
domestic and global economic conditions, the impact of competitive
products and pricing, and the availability and cost of raw
materials. For a more complete discussion of factors that may
affect the Company's future performance, please refer to the
Company's most recent 10-K filing (December 29, 2003) under the
Securities Exchange Act of 1934, in particular the sections titled,
"Private Securities Litigation Reform Act" contained therein.
Contacts: Jeff Galow, 713/877-5327 Valerie Calvert, 713/877-5305
http://www.newscom.com/cgi-bin/prnh/20031231/QUANEXLOGO
http://www.newscom.com/cgi-bin/prnh/20010522/DATU048
http://photoarchive.ap.org/ DATASOURCE: Quanex Corporation CONTACT:
Jeff Galow, +1-713-877-5327, or Valerie Calvert, +1-713-877-5305,
both of Quanex Corporation Web site: http://www.quanex.com/
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