Jacuzzi Brands, Inc. (NYSE: JJZ), a leading global producer of branded bath and plumbing products for the residential, commercial and institutional markets, today announced that it would consolidate its Bradford, U.K. ceramics production into its Newcastle-Under-Lyme, U.K. facility and its outsourcing partners. The Bradford facilities manufacture bath products including shower enclosures, sanitary ware and acrylic baths. This action, which was not included in our previously issued earnings guidance for fiscal 2006, is part of Jacuzzi Brands' ongoing initiatives to improve the overall operating performance of its Bath Products business segment to meet its long term operating goals. The Company does not anticipate any customer service disruptions during this period. The Company further stated that the costs of this consolidation are expected to approximate $3.1 million or $0.02 per share, including $1.3 million for anticipated severance and other cash expenses to be classified as restructuring and $1.3 million in accelerated depreciation and $0.5 million in inventory write-offs to be included in cost of goods sold. These non-recurring charges will be taken during the second, third and fourth quarters of fiscal 2006. Management plans to complete this plant consolidation and integration by fiscal year end. This action is not expected to have any effect on the Company's operating income in fiscal 2006 after excluding the non-recurring charges but is expected to improve operating income beginning in fiscal 2007 by approximately $3.0 million per year. Approximately 100 employees will be affected by this action. Al Marini, President and Chief Operating Officer of Jacuzzi Brands, Inc., said, "Jacuzzi Brands is committed to delivering maximum value to shareholders, while at the same time delivering excellent design and quality to our customers. While we regret the disruption to the Bradford workforce, this consolidation is part of our ongoing plan to remain competitive in the market place, improve efficiencies, and mitigate the impact of rising raw material and energy costs." Jacuzzi Brands, Inc., through its subsidiaries, is a global manufacturer and distributor of branded bath and plumbing products for the residential, commercial and institutional markets. These include whirlpool baths, spas, showers, sanitary ware and bathtubs, as well as professional grade drainage, water control, commercial faucets and other plumbing products. Our products are marketed under our portfolio of brand names, including JACUZZI(R), SUNDANCE(R), ZURN(R) and ASTRACAST(R). Learn more at www.jacuzzibrands.com. Disclosure Concerning Forward-Looking Statements Any forward-looking statements made within this release including the Company's current expectations with respect to future market conditions, future operating results and other plans, represent management's best judgment as to what may occur in the future and are intended to fall within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "intends," "plans," "projects," "believes," "estimates," "may," "will," "should," "shall," and similar expressions typically identify such forward-looking statements. Even though the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. In particular, various economic and competitive factors, including those outside our control, such as interest rates, foreign currency exchange rates, inflation rates, instability in domestic and foreign financial markets, terrorist acts, consumer spending patterns, energy costs and availability, freight costs, availability of consumer and commercial credit, adverse weather, levels of residential and commercial construction, and changes in raw material and component costs, and the credit worthiness of our customers, insurers, and investees, and other factors contained in the Company's filings with the Securities and Exchange Commission could cause our actual results during the remainder of 2006 and in the future years to differ materially from those expressed in this press release.
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