Federal Paper Board Co. Inc. makes announcement.MONTVALE, N.J.--Oct. 17, 1995--(BUSINESS WIRE)--As previously announced, Federal Paper Board Company, Inc. (NYSE NYSE See: New York Stock Exchange :FBO FBO Federal Business Opportunities FBO FedBizOpps (formerly Commerce Business Daily) FBO Fixed Base Operator FBO For the Benefit Of (finance) FBO Fixed Base Operation FBO Faith Based Organization ) will restructure its Imperial Bondware cup operations. The restructuring will consist of consolidating operations from five plants to three larger core plants located in Shelbyville, IL, Kenton, OH and Visalia, CA. In connection with the restructuring the Company will be taking a fourth quarter pre-tax charge of approximately $73,000,000, of which $69,000,000 will be a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. , related to the write-off of goodwill and fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → being retired. Approximately 450 employees will be affected by the restructuring. The Company will exit the plastic cup business with the sale or closure of its LaFayette, GA plant. Plastic lids will continue to be produced at the Company's largest and most efficient cup plant in Shelbyville, IL. The Company will also cease production of waxed cups, currently produced at its Chicago plant which will be closed. The Company expects most of its wax cup customers to convert to poly coated cups, which are higher in quality and offer superior graphic capabilities. The restructuring is expected to substantially increase operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from the remaining core plants, with increased volume at those locations and a reduction in costs. In the last three years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Company has invested over $50 million in capital to deliver the most efficient and cost effective poly cup manufacturing in the industry. It is the only paper cup producer to extrude extrude /ex·trude/ (ek-strldbomacd´) 1. to force out, or to occupy a position distal to that normally occupied. 2. in dentistry, to occupy a position occlusal to that normally occupied. poly on site in its Shelbyville, IL plant. The capital expenditure program has increased productivity by 30 percent and improved quality. The remaining plants will continue to use about 130,000 tons of bleached board annually, most of which will be supplied from the Company's mills. The three remaining core plants are modern and cost efficient and have the capacity to handle business transferred from the closed facilities. Federal Paper Board Company, Inc. manufactures and sells solid bleached paperboard, bleached market pulp, recycled paperboard, paper and plastic cups, folding cartons, lumber and uncoated free-sheet paper. The Company operates two bleached kraft paperboard and pulp mills, one recycled paperboard mill, four sheeting and distribution centers, one extrusion coating plant, three cup plants, four folding carton plants and five wood products mills in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. along with one uncoated free-sheet mill and one sheeting and distribution center in the United Kingdom. Federal has approximately 6,800 employees. CONTACT: Quentin J. Kennedy Executive Vice President Federal Paper Board Company, Inc. (201) 391-1776 |
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