American & Efird To Exit Korea.CHARLOTTE, N.C.--(BUSINESS WIRE)--June 23, 1998--Ruddick Corporation (NYSE NYSE See: New York Stock Exchange :RDK RDK Reference Design Kit RDK Red Dragon Karate (compilation of different major styles, mostly based on Shotokan) RDK Reload Delay Kit RDK Report Developer Kit RDK Rapid Deployment Kit RDK Re-Distribution Kit RDK Render Developer Kit ) today reported that American & Efird ("A&E"), its industrial thread manufacturing subsidiary, has decided to close its operations in Korea, where it currently operates a dyeing and finishing plant supporting sales and distribution activities. As a result of the continued deterioration of business conditions in Korea and A&E's assessment of future business prospects in this country, management has made the decision to withdraw from the market. "We have already incurred operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.5 million during the first six months of the fiscal year," stated Thomas W. Dickson, Ruddick Corporation President. "We believe that it is in the best interests of A&E and of our shareholders to liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the our investment in Korea at this time." For the prior fiscal year, Korea accounted for $5.8 million of Ruddick's consolidated sales of $2.3 billion. The financial exposures in Korea are not material to the financial condition of the Company as a whole. During its third fiscal quarter ending June 28, 1998, additional operating losses attributable to Korea are expected to total approximately $800 thousand. In addition, under the adopted plan of withdrawal, A&E anticipates that the total pre-tax cost of withdrawing from Korea, including closure of the plant and liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of assets, as well as severance expenses, will be approximately $3.1 million. The decrease in operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the quarter is therefore estimated at $3.9 million, which will adversely impact after-tax earnings per share for Ruddick Corporation by about $.06. The company reported that it continues to monitor the business conditions elsewhere in the economically troubled Asian markets. A&E has operations in China, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and Malaysia, and management believes that these operations hold solid future potential. This news release contains forward-looking statements that involve uncertainties. A discussion of various important factors that could cause results to differ materially from those expressed in such forward-looking statements is included in reports filed by the Company with the Securities and Exchange Commission. Ruddick Corporation is a holding company which operates two subsidiaries: Harris Teeter Harris Teeter is a chain of upscale supermarkets based in Matthews, North Carolina, just outside Charlotte. As of September 2007, the chain operates 164 stores in seven southeastern states: North Carolina, South Carolina, Virginia, Georgia, Tennessee, Florida, Maryland; the , Inc., a regional chain of supermarkets in five southeastern states and American & Efird, Inc., a leading manufacturer and distributor of industrial sewing thread.
CONTACT: Ruddick Corp.
Katharine W. Kenny, V.P.,
Investor Relations, 704/372-5404
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