La-Z-BOY Announces Corporate Initiatives
2008年11月7日 - 6:40AM
PRニュース・ワイアー (英語)
MONROE, Mich., Nov. 6 /PRNewswire-FirstCall/ -- La-Z-Boy
Incorporated (NYSE:LZB) today announced a series of initiatives
designed to respond to the challenges of the current operating
environment. Due to difficult macroeconomic conditions, fueled
principally by events in the financial, credit and housing markets,
declining consumer confidence and the discretionary nature of home
furnishings purchases, La-Z-Boy will take the following actions to
align its operating structure with today's level of business. It
will: -- Immediately reduce its headcount by about 10%, or
approximately 850 employees, across all levels of the company; --
Close 15 to 20 La-Z-Boy Furniture Galleries(R) stores, primarily
dealer owned, over the next 90 to 120 days, due to the overall
tightening of the credit markets; -- Significantly reduce its
planned fiscal 2009 capital expenditures from approximately $27
million to approximately $18 million to $20 million; and --
Aggressively reduce its overall operating expenses and inventories
to be in alignment with today's volumes. Kurt Darrow, La-Z-Boy's
President and Chief Executive Officer, said, "Given the turmoil in
the global financial markets coupled with declining consumer
confidence and tightening credit, the furniture industry is in the
midst of an unprecedented downward spiral as the consumer reacts to
these events by postponing home furnishings and other discretionary
purchases. Based on the magnitude of the change in our incoming
order rates, we are taking immediate action to aggressively reshape
our business so that our costs and inventories more accurately
reflect the reality of the current operating climate. While these
decisions are difficult to make and we regret the impact they will
have on those affected and their families, they are necessary to
structure our company to operate more efficiently in what has
rapidly turned in recent weeks into a much weaker demand
environment. In the short-term, we will focus on managing the
business for cash generation and ensuring the continued liquidity
of our corporation." Darrow added, "Although we are making these
significant changes and curtailing our expenditures on a number of
projects that do not contribute immediately to the bottom line, we
are continuing to move forward with our investment in several major
initiatives that are key to our profitable growth. These include
our new cut-and-sew facility in Mexico, which is scheduled to open
in January of 2009, and the continued warehouse consolidation
process of the La-Z-Boy Furniture Galleries(R) dealer base.
Importantly, we have every confidence that both the strength of our
brand and maintaining a strong financial position will allow us to
weather the unprecedented storm that has had an adverse effect on
our industry." Severance and other benefit costs will result in an
approximate $1.5 million to $2.5 million pre-tax charge, the
majority of which will be incurred in the third quarter of the
company's 2009 fiscal year. The company plans to report its fiscal
2009 second-quarter results after the close of market on November
18, 2008, with a conference call scheduled for the morning of
November 19, 2008, and will update the investment community with
more details on its various initiatives at that time.
Forward-looking Information Any forward-looking statements
contained in this news release are based on current information and
assumptions and represent management's best judgment at the present
time. Actual results could differ materially from those anticipated
or projected due to a number of factors. These factors include, but
are not limited to: (a) changes in consumer confidence; (b) changes
in demographics; (c) further changes in the housing market; (d) the
impact of terrorism or war; (e) continued energy price changes; (f)
the impact of logistics on imports; (g) the impact of interest rate
changes; (h) changes in currency exchange rates; (i) competitive
factors; (j) operating factors, such as supply, labor or
distribution disruptions including changes in operating conditions
or costs; (k) effects of restructuring actions; (l) changes in the
domestic or international regulatory environment; (m) ability to
implement global sourcing organization strategies; (n) fair value
changes to our intangible assets due to actual results differing
from projected; (o) the impact of adopting new accounting
principles; (p) the impact from natural events such as hurricanes,
earthquakes and tornadoes; (q) the ability to procure fabric rolls
and leather hides or cut and sewn fabric sets domestically or
abroad; (r) continued decline in the credit market and potential
impacts on our customers; (s) those matters discussed in Item 1A of
our fiscal 2008 Annual Report and factors relating to acquisitions
and other factors identified from time to time in our reports filed
with the Securities and Exchange Commission. We undertake no
obligation to update or revise any forward-looking statements,
either to reflect new developments or for any other reason.
Additional Information This news release is just one part of
La-Z-Boy's financial disclosures and should be read in conjunction
with other information filed with the Securities and Exchange
Commission, which is available at
http://www.la-z-boy.com/about/investorRelations/sec_filings.aspx .
Investors and others wishing to be notified of future La-Z-Boy news
releases, SEC filings and quarterly investor conference calls may
sign up at:
http://www.la-z-boy.com/about/investorRelations/IR_email_alerts.aspx
. Background Information La-Z-Boy Incorporated is one of the
world's leading residential furniture producers, marketing
furniture for every room of the home. The La-Z-Boy Upholstery Group
companies are Bauhaus, England and La-Z-Boy. The La-Z-Boy Casegoods
Group companies are American Drew/Lea, Hammary and Kincaid. The
corporation's proprietary distribution network is dedicated
exclusively to selling La-Z-Boy Incorporated products and brands,
and includes 333 stand-alone La-Z-Boy Furniture Galleries(R)
stores, 21 La-Z-Boy In-Store Galleries and 387 Comfort Studios, in
addition to in-store gallery programs at the company's Kincaid,
England and Lea operating units. According to industry trade
publication In Furniture, the La-Z-Boy Furniture Galleries retail
network is North America's largest single-brand furniture retailer.
Additional information is available at http://www.la-z-boy.com/ .
DATASOURCE: La-Z-Boy Incorporated CONTACT: Kathy Liebmann,
+1-734-241-2438, Web site: http://www.la-z-boy.com/
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