ARMSTRONG, Iowa, Aug. 11, 2016 /PRNewswire/ -- Art's Way
Manufacturing Co., Inc. (NASDAQ: ARTW), a diversified,
international manufacturer and distributor of equipment serving
agricultural, research, water treatment and steel cutting needs,
announced today that it intends to
discontinue the operations of its Art's Way Vessels
segment in the third quarter of its 2016 fiscal
year.
Art's Way Vessels, Inc., a wholly-owned subsidiary
of Art's Way Manufacturing Co.,
Inc., specializes in ASME code and non-code pressurized
vessels and storage tanks for water treatment, petroleum,
agriculture, food & beverage, marine and mining
industries.
The intended action is part of the company's ongoing focus
of its efforts and resources on the business segments that have
historically been more successful and that are expected to present
greater opportunities for meaningful long-term shareholder returns.
The company plans to fulfill its current backlog commitments to
customers and subsequently pursue an orderly sale of the assets
associated with the Vessels segment, including real estate,
equipment and inventory. The company anticipates incurring charges
associated with this divestiture until the process is complete,
likely in fiscal 2017. The representative for unionized
Vessels employees has been notified of the expected closure, which
would affect approximately 15 employees.
"After careful consideration of the possible outcomes for
the Vessels segment that would serve our business and shareholders
best, the decision was ultimately made to discontinue the
operations of Art's Way Vessels," stated Chairman of the Art's Way
Board of Directors, Marc H.
McConnell. "We would like to sincerely thank
our Vessels employees for their work over the
past eleven years and regret that this decision impacts them
negatively. This decision was difficult but is a necessary step in
positioning our business for the long-term stability and
profitability that we are pursuing. Our focus on the activities
that have made Art's Way a strong, enduring, and profitable
company for the past 60 years will help ensure that we are
positioned to benefit from the opportunities we see coming forth in
the Agricultural, Modular Building, and Tools segments."
About Art's Way Manufacturing, Inc.
Art's Way manufactures and distributes farm machinery niche
products including animal feed processing equipment, sugar beet
defoliators and harvesters, land maintenance equipment, crop
shredding equipment, round hay balers, plows, hay and forage
equipment, manure spreaders, reels for combines and swathers, and
top and bottom drive augers, as well as modular animal confinement
buildings and laboratories and specialty tools and inserts.
After-market service parts are also an important part of the
Company's business. The Company currently has four reporting
segments: agricultural products; pressurized tanks and vessels;
modular buildings; and tools.
For more information contact: Carrie Majeski, Chief Executive Officer
712-864-3131
investorrelations@artsway-mfg.com
Or visit the Company's website at
www.artsway-mfg.com/
Cautionary Statements
This news release includes "forward-looking statements" within
the meaning of the federal securities laws. Statements made in this
release that are not strictly statements of historical facts,
including our expectations relating to discontinuing our Vessels
operations, the timing of related activities and charges, and our
long-term business strategy and opportunities, are forward-looking
statements. Statements of anticipated future results are
based on current expectations and are subject to a number of risks
and uncertainties, including, but not limited to: customer and
employee matters that may arise in connection with discontinuing
the Vessels operations; the nature and magnitude of charges
relating to the divestiture; unexpected delays in fulfilling
backlog; our ability to sell Vessels assets in a timely manner and
at a favorable price; performance at our Manufacturing, Scientific
and Tools products; our ability to operate at lower expense levels;
our ability to renew or obtain financing on reasonable terms; and
other factors detailed from time to time in our Securities and
Exchange Commission filings. Actual results may differ markedly
from management's expectations. The Company cautions readers not to
place undue reliance upon any such forward-looking
statements. We do not intend to update forward-looking
statements other than as required by law.
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visit:http://www.prnewswire.com/news-releases/arts-way-manufacturing-announces-intention-to-discontinue-vessels-business-300312430.html
SOURCE Art's Way Manufacturing Co., Inc.