Gibraltar Industries to Exit US Bar Grating and European Residential Solar Racking
December 02 2016 - 9:00AM
Business Wire
Action Aligned with Portfolio Management
Strategy to Focus Resources on Businesses with Highest Potential
Returns
Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading
manufacturer and distributor of building products, announced today
that it will exit its US bar grating product line and its small
European business selling residential solar racking as part of its
portfolio management and 80/20 strategic initiatives. This action
will include the closing of 5 facilities and the release of 250
employees over the next 120 days.
“We would like to express our sincere gratitude and appreciation
to the employees who will be affected by the exiting of this
product line and business,” said Gibraltar Chief Executive Officer
Frank Heard. “While these dedicated teams have worked tirelessly to
improve operating performance, negative market dynamics continue to
hinder the profitability of both product lines for the foreseeable
future.
“We made the decision to exit these product lines after
assessing their prospects for future growth in the context of our
portfolio management and 80/20 strategic initiatives to focus
resources on the highest-return markets, platforms and businesses.
These actions will enhance the overall profitability and financial
strength of the Company going forward and also will benefit future
employment and career opportunities across Gibraltar’s group of
companies.”
The combined effect of these actions on the overall Company is
expected to reduce annual revenues by approximately $75 million and
increase operating income by upwards of $6 million, or $0.12 per
diluted share. These actions will primarily affect our Industrial
and Infrastructure Products segment.
The Company expects to record after-tax charges approximating
$27 million, predominated by non-cash write-downs in net asset
values. Approximately $21 million of the net charges, or $0.68 per
diluted share, will be recorded in the fourth quarter 2016 and $6
million, or $0.19 per share, will be recorded in the first quarter
2017.
Safe Harbor StatementInformation contained in this news
release, other than historical information, contains
forward-looking statements and is subject to a number of risk
factors, uncertainties, and assumptions. Risk factors that could
affect these statements include, but are not limited to, the
following: the availability of raw materials and the effects of
changing raw material prices on the Company’s results of
operations; energy prices and usage; changing demand for the
Company’s products and services; changes in the liquidity of the
capital and credit markets; risks associated with the integration
and performance of acquisitions; and changes in interest and tax
rates. In addition, such forward-looking statements could also be
affected by general industry and market conditions, as well as
general economic and political conditions. The Company undertakes
no obligation to update any forward-looking statements, whether as
a result of new information, future events or otherwise, except as
may be required by applicable law or regulation.
About GibraltarGibraltar Industries is a leading
manufacturer and distributor of building products for industrial,
infrastructure, residential housing, and renewable energy markets.
With a four-pillar strategy focused on operational improvement,
product innovation, acquisitions and portfolio management,
Gibraltar’s mission is to drive best-in-class performance.
Gibraltar serves customers worldwide through facilities in the
United States, Canada, China and Japan. Comprehensive information
about Gibraltar can be found on its website at
http://www.gibraltar1.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20161202005378/en/
Gibraltar Industries, Inc.Kenneth Smith, 716-826-6500 ext.
3217Chief Financial Officerkwsmith@gibraltar1.com
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