Mueller Water Products Intends To Close U.S. Pipe Manufacturing Operations in New Jersey
06 November 2007 - 10:45PM
PR Newswire (US)
ATLANTA, Nov. 6 /PRNewswire-FirstCall/ -- Mueller Water Products,
Inc. (NYSE:MWA.BNYSE:MWA) today announced that its U.S. Pipe and
Foundry division intends to close its ductile iron pipe
manufacturing operations in Burlington, N.J. by February 2008,
eliminating approximately 180 jobs. The Burlington facility will
continue to be used as a full-service distribution center for
customers in the Northeast. Discontinuing this manufacturing is
part of U.S. Pipe's efforts to reconfigure its operations to remain
competitive and increase margins. Production will be transferred
from Burlington to other U.S. Pipe facilities. "To be globally
competitive in our ductile iron pipe business, we must constantly
strive to be the low-cost producer," said Gregory E. Hyland,
president, chairman and chief executive officer. "We are committed
to taking the steps necessary to protect our leadership position in
the market and to build the foundation necessary for future
growth." In connection with this action, the Company expects to
record a restructuring charge of approximately $19 million,
substantially all of which will be taken in the first quarter of
fiscal 2008. This charge is comprised of approximately $15 million
of asset write-offs and $4 million of cash costs, including
severance and other costs associated with the closing. Incremental
cash operating expenses associated with the restructuring of
approximately $3 million are expected to be incurred throughout the
final three quarters of fiscal 2008. Savings on an annualized basis
are projected to be in the $15 to $17 million range, with
approximately $12 million expected to be realized in fiscal 2008,
partially offset by incremental operating expense of $3 million.
Safe Harbor Statement Except for historical information contained
herein, the statements in this release are forward-looking and made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
known and unknown risks and uncertainties that may cause the actual
results in future periods of Mueller Water Products, Inc. to differ
materially from forecasted results. Those risks include, among
others, changes in customer orders and demand for our products;
changes in raw material pricing, labor, equipment and
transportation costs; the inability to successfully execute
management strategies with respect to cost containment, production
decreases, inventory control and the construction of a new
manufacturing plant; changes in the law; and general changes in
economic conditions. Risks associated with forward-looking
statements are more fully described in our filings with the
Securities and Exchange Commission. Mueller Water Products assumes
no duty to update its forward-looking statements as of any future
date. About U.S. Pipe U.S. Pipe & Foundry, LLC, a business
segment of Mueller Water Products, Inc., is a leading domestic
producer of ductile iron pipe, used primarily for clean water
transmission. Headquartered in Birmingham, Ala., U.S. Pipe operates
facilities in North Birmingham and Bessemer, Ala.; Burlington, N.J.
and Union City, Calif. Visit http://www.uspipe.com/ for more
information about U.S. Pipe. About Mueller Water Products Mueller
Water Products is a leading North American manufacturer and
marketer of infrastructure and flow control products for use in
water distribution networks and treatment facilities. Its broad
product portfolio includes engineered valves, hydrants, ductile
iron pipe and pipe fittings, which are utilized by municipalities,
as well as the commercial and residential construction, oil and
gas, HVAC and fire protection industries. With revenues of
approximately $1.85 billion, the Company is comprised of three main
operating segments: Mueller Co., U.S. Pipe and Anvil. Based in
Atlanta, Georgia, the Company employs approximately 6,600 people.
Mueller Water Products Series B common stock and Series A common
stock trade on the New York Stock Exchange under the ticker symbols
MWA.B and MWA, respectively. For more information about Mueller
Water Products, please visit the Company's Web site at
http://www.muellerwaterproducts.com/. Investor Contact: Martie
Edmunds Zakas Sr. Vice President - Strategic Planning &
Investor Relations 770-206-4237 Media Contact: Nancy Young
Consultant 770-206-4240 DATASOURCE: Mueller Water Products, Inc.
CONTACT: Investors, Martie Edmunds Zakas, Sr. Vice President -
Strategic Planning & Investor Relations, +1-770-206-4237, ; or
Media, Nancy Young, Consultant, +1-770-206-4240, , both of Mueller
Water Products, Inc. Web site: http://www.muellerwaterproducts.com/
http://www.uspipe.com/
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