Citation announces the sale of Pennsylvania Steel subsidiary.BIRMINGHAM, Ala.--(BUSINESS WIRE)--Oct. 15, 1996--Citation Corporation (Nasdaq:CAST) today announced that it had reached an agreement in principle for the sale of its Pennsylvania Steel Foundry and Machine Company in Hamburg, Pennsylvania Hamburg is a borough in Berks County, Pennsylvania, United States. The population was 4,114 at the 2000 census. The town is named after Hamburg, Germany. Geography Hamburg is located at (40.556271, -75.982667). to Atchison Casting Corporation (Nasdaq:ACCX). Pennsylvania Steel supplies carbon and high alloy steel castings Steel casting is a manufacturing process in which molten metal is poured into a mold, allowed to solidify within the mold, and then the mold is broken and the solid piece is taken out. to the power generation, valve and pump industries. The agreement is subject to completion of a definitive sales contract Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. and approval by both Boards of Directors. Citation originally purchased Pennsylvania Steel from its owner in June 1995. The tentative sale price for Pennsylvania Steel is for less than the net asset value and is expected to result in a one time loss to Citation of approximately $1.5 million that will be charged against 1996 fiscal year earnings. T. Morris Hackney Hackney, inner borough (1991 pop. 164,200) of Greater London, SE England, on the Lea River. Clothing manufacture (in Hackney) and printing and furniture making (in Shoreditch) are the borough's chief industries. London's first theater was built in Shoreditch (c.1575). , Citation Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "Sale of Pennsylvania Steel allows Citation to withdraw from a market in which we do not have a strong position and to avoid capital expenditures which can be applied elsewhere. This does not, in any way, affect our commitment to other steel casting markets in which our Texas Steel Company is currently engaged." Citation Corporation is a metal components producer for the durable goods durable goods Goods, such as appliances and automobiles, that have a useful life over a number of periods. Firms that produce durable goods are often subject to wide fluctuations in sales and profits. Also called consumer durables. industry with 16 manufacturing divisions located in nine states. Sales for the most recent nine-months period was $356.1 million. CONTACT: Citation Corporation, Birmingham Stanley B. Atkins, 205/871-5731 |
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