Lund International Holdings, Inc., Anoka, Minnesota, Announces Restructuring of Its Operations
20 October 2000
Lund International Holdings, Inc., Anoka, Minnesota, Announces Restructuring of Its Operations
ANOKA, Minn., Oct. 20 Lund International Holdings, Inc. announced today that it
has relocated its corporate headquarters to Duluth, Ga. Further, as part of
its restructuring plan it will close its Distribution Center at its Anoka,
Minn. facility and relocate it to one of the Company's existing warehouses in
Lawrenceville, Ga. The Company previously announced that plastic
manufacturing operations were relocated from the Anoka facility to its
operations in Lawrenceville, Ga. As well, the Company is in the process of
outsourcing the fiberglass production from the Anoka facility. The fiberglass
outsourcing will be completed no later than November 30, 2000 resulting in a
reduction of approximately 70 hourly employees. The Anoka facility,
consisting of 330,000 square feet of manufacturing, warehouse and office
space, has been listed for sale. Upon the sale of the Anoka facility, the
Company will relocate certain executive and administrative functions currently
residing at the Anoka facility to a nearby office space.
The Company anticipates phasing out the Distribution Center operations
over the next four to six months. There are currently 137 employees at the
Anoka facility, excluding the fiberglass operations. Relocating this
distribution center will impact approximately 60 employees. The relocation of
the Distribution Center to Georgia is expected to reduce the Company's
warehouse and shipping costs and allow it to provide better service to its
customer base from a more centrally located site. The Company anticipates
taking approximately $1,000,000 of restructuring charges during the fourth
quarter 2000 and first six months of 2001 related to the relocation of the
current Anoka facility.
Dennis Vollmershausen, President and Chief Executive Officer, stated that,
"The relocation of the Anoka distribution center is another step to
restructure and consolidate the Company's operations to increase efficiencies
and reduce operating costs." In February 1999, the Company divested its
Fibernetics business, a subsidiary where extruded plastics and fiberglass
components were manufactured. As well, the Company's Coldwater, Mich. plant
was closed in July, 2000 with the relocation of the Trailmaster suspension
products manufacturing and warehousing operations to Corona, Calif., where
Smittybilt tubular products are also manufactured. In summary, Lund
International has consolidated its manufacturing operations from eight (8)
into five (5) locations.
Lund International is a leading designer, manufacturer and marketer of a
broad line of accessories for the automotive aftermarket. Its products are
sold under the trade names "Lund(R)," "Deflecta-Shield(R),"
"Deflecta-Shield(R)" Aluminum, "Autotron(TM)," "Belmor(R)," "Trail Master(R),"
"Auto Ventshade(R)," and "Smittybilt(R)." The corporate headquarters are now
located at 3700 Crestwood Parkway, NW, Suite 1000, Duluth, Georgia, 30096,
tel. 770-688-2050.
Statements in this press release relating to future or anticipated company
operations or results are forward-looking statements made under the Private
Securities Litigation Reform Act of 1995. These statements involve risks and
uncertainties which could cause results of operations to differ materially
from those anticipated. Among the factors that could cause results of
operations to differ materially are the following: inability to obtain
expected efficiencies from acquisitions, or to obtain them in a timely manner;
consumer preference changes; increased competition; general economic
developments and trends; developments and trends in the light truck and
automotive accessory market; sales of heavy trucks, which are cyclical;
introduction of competitive new products by the Company and acceptance of
those new products; increased cost and risks of expansion into new
distribution channels. This is not an exhaustive list and the Company may
supplement this list in future filings or releases or in connection with the
making of forward-looking statements.