Standard Register Plans Plant Closing as Sales Results Drop
CORNING, IA—Dayton, OH-based Standard Register (SR), looking to reduce manufacturing costs, says it will close its forms printing plant here. The company also announced the phasing out of its Dayton-based production of certain forms-handling equipment products.
Additionally, SR will consolidate field sales and support management, which officials say will result in improved operating efficiencies, and position the organization to capture market growth opportunities. The company will also offer an enhanced early retirement option to a number of its Dayton-based corporate headquarters employees.
Officials say these actions are expected to result in a first quarter 2000 restructuring charge in the range of $15 million to $18 million comprised of asset write-downs and cash closing costs. Annual savings will recover the cash closing costs in less than one year, officials add.
“We’re committed to delivering the business documents and information management solutions our customers need to excel,” notes Standard Register President and CEO Peter S. Redding. “The combined result of these actions is a stronger, more responsive and more profitable Standard Register.”
The announcement came as the company announced fourth-quarter revenue from continuing operations totaling $338 million, compared to $352 million in fourth quarter 1998. Although revenues dropped in the most recent quarter, revenue for full-year 1999 was $1.327 billion compared to $1.300 billion in 1998.
Both the quarter and year-end results were in line with the company’s revised expectations. The fourth quarter shortfall is attributed in major part to higher paper costs, investments in SR’s company-wide software initiative, further development of the company’s SMARTworks e-Business platform and low manufacturing utilization in certain traditional product segments.