Royal Group Provides Status Update
April 26 2006 - 7:34PM
PR Newswire (US)
TORONTO, April 26 /PRNewswire-FirstCall/ -- Royal Group
Technologies Limited (RYG - TSX: NYSE) today provided a status
update pursuant to the policies of the Ontario Securities
Commission ("OSC") and the Canadian Securities Administrators. The
Company reported that there have been no material developments in
the matters initially reported in its press release of March 14,
2006, and the recent bi-weekly status update on April 12, 2006,
with the exception of the issuance by the Ontario Securities
Commission and the Autorite des Marches Financiers of permanent
management cease trade orders. On April 18, 2006, the OSC issued a
permanent order that prohibits all trading by directors, officers
and insiders in the securities of the Company. The AMF issued a
similar order with respect to an insider of the Company in Quebec.
These permanent orders replaced the temporary orders issued on
April 3, 2006. The permanent management cease trade orders will
remain in place until two full business days after the date the
Company has made all filings required to be made under Canadian
securities laws. Royal Group Technologies is a leading producer of
innovative, attractive, durable and low-maintenance home
improvement and building products, which are primarily utilized in
both the renovation and new construction sectors of the North
American construction industry. Royal Group is the recipient of
several industry awards for product innovation. The Company has
manufacturing operations located throughout North America in order
to provide industry-leading service to its extensive customer
network. Additional investment information is available on Royal
Group's web site at http://www.royalgrouptech.com/ under the
"Investor Relations" section. The information in this document
contains certain forward-looking statements with respect to Royal
Group Technologies Limited, its subsidiaries and affiliates. These
statements are often, but not always made through the use of words
or phrases such as "expect", "should continue", "continue",
"believe", "anticipate", "suggest", "estimate", "contemplate",
"target", "plan", "budget", "may", "will", "schedule" and "intend"
or similar formulations. By their nature, these forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are
inherently subject to significant, known and unknown, business,
economic, competitive and other risks, uncertainties and other
factors affecting Royal specifically or its industry generally that
could cause actual performance, achievements and financial results
to differ materially from those contemplated by the forward-looking
statements. These risks and uncertainties include the ongoing
shareholder value maximization process and its outcome; the ongoing
internal review and investigations by the Audit Committee of the
Board of Directors and its outcome; the negative impact that may be
caused by the delay in filing of Royal Group's 2005 financial
statements, including, without limitation, a breach by Royal Group
of its banking agreement, an adverse effect on Royal Group's
business and the market price of its publicly traded securities,
and a breach by Royal Group of the continued listing requirements
of the New York Stock Exchange and Toronto Stock Exchange;
fluctuations in the level of renovation, remodelling and
construction activity; changes in product costs and pricing; an
inability to achieve or delays in achieving savings related to the
cost reductions or increases in revenues related to sales price
increases; the sufficiency of our restructuring activities,
including the potential for higher actual costs to be incurred in
connection with restructuring activities compared to the estimated
costs of such actions; the ability to recruit and retain qualified
employees; the level of outstanding debt and our current debt
ratings; Royal's ability to maintain adequate liquidity and
refinance its debt structure by December 31, 2006, the expiry date
of its current bank credit facility; the ability to meet the
financial covenants in our credit facilities; changes in product
mix; the growth rate of the markets into which Royal's products are
sold; market acceptance and demand for Royal's products; changes in
availability or prices for raw materials; pricing pressures
resulting from competition; difficulty in developing and
introducing new products; failure to penetrate new markets
effectively; the effect on foreign operations of currency
fluctuations, tariffs, nationalization, exchange controls,
limitations on foreign investment in local business and other
political, economic and regulatory risks; difficulty in preserving
proprietary technology; adverse resolution of any litigation,
investigations, administrative and regulatory matters, intellectual
property disputes, or similar matters; changes in securities or
environmental laws, rules and regulations; currency risk exposure
and other risks described from time to time in publicly filed
disclosure documents and securities commission reports of Royal
Group Technologies Limited and its subsidiaries and affiliates. In
view of these uncertainties we caution readers not to place undue
reliance on these forward-looking statements. Statements made in
this document are made as of April 26, 2006 and Royal disclaims any
intention or obligation to update or revise any statements made
herein, whether as a result of new information, future events or
otherwise. DATASOURCE: Royal Group Technologies Limited CONTACT:
Mark Badger, Vice President of Marketing and Corporate
Communications, Royal Group Technologies Limited, Phone: (905)
264-0701
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