UFPI announces plant closures to accommodate business environment
Jan 21, 2008. Universal Forest Products, Inc. (UFPI) today announced the closure and intended sale of a number of facilities to better align manufacturing capacity with the current business environment.
Jan 21, 2008. /Lesprom Network/. Universal Forest Products, Inc. (UFPI) today announced the closure and intended sale of a number of facilities to better align manufacturing capacity with the current business environment.
The closures are expected to result in pre-tax, non-cash charges of approximately $6.8 million ($5.5 million after income taxes) to write down the value of certain property, plant and equipment. In addition, the company will recognize severance and other nonrecurring expenses of approximately $2 million ($1.3 million after income taxes). All of these costs will be recorded in the 4Q 2007.
Closed facilities in Stanfield, NC; Gulfport, MS; Elkhart, IN; Westville, IN; Sanford, NC; and a portion of the operations in Thorndale, ON, Canada, will not be needed when the housing market recovers and, therefore, are expected to be sold. Operations from these facilities have been consolidated into plants in New London, NC; New Waverly, TX; White Pigeon, MI; Granger, IN; Bunn, NC; and Emlenton, PA, respectively.
The sale of these facilities together with the sale of other excess real estate is expected to generate approximately $38 million in positive cash flow before taxes in 2008. Due to current market conditions, the company also has temporarily closed eight other operations and has consolidated them into existing Universal facilities. Collectively, the closed operations had total estimated pre-tax operating losses of more than $11 million in 2007.
Universal Forest Products markets, manufactures and engineers wood and wood-alternative products for D-I-Y/retail home centers, structural lumber products for the manufactured housing industry, engineered wood components for the site-built construction market, and specialty wood packaging for various industries.