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American Standard Announces Actions to Improve Productivity, Efficiency

29 December 2000

American Standard Announces Actions to Improve Productivity, Enhance Efficiency

    PISCATAWAY, N.J., Dec. 28 American Standard Companies Inc.
today announced an operational consolidation and streamlining
actions targeted at eliminating duplication of work, enhancing productivity
and improving profitability. The company said that it expects these actions to
result in a reduction of 1,200 positions on a global basis. These reductions
will take place in the company's three businesses and will involve the closing
of one manufacturing plant.
    The company said these actions, to be implemented during 2001, will result
in a pre-tax charge of approximately $82 million in the fourth quarter of
2000. However, this charge will be fully offset by a gain from the recently
announced sale of its Calorex water heater business and therefore there will
be no impact on the company's fourth quarter results.
    "These changes will eliminate job duplications and bring our operations
closer to customers, enhancing our efficiency and competitive position across
all business lines," said Frederic Poses, American Standard Chairman and Chief
Executive Officer. "We expect these actions will generate savings of more than
$50 million annually on an ongoing basis."
    American Standard currently employs approximately 58,000 people in 36
countries.