LUFKIN DECIDES TO EXIT TRAILER BUSINESS
LUFKIN DECIDES TO EXIT TRAILER BUSINESS LUFKIN, Texas, Nov. 20 /PRNewswire/ -- Lufkin Industries, Inc.
(NASDAQ: LUFK) announced today that it plans to exit the highway trailer business and focus the company on its profitable business segments which are oil field equipment and power transmission products. Lufkin's board of directors has engaged Wasserstein Perella & Co., Inc. to advise the company regarding its strategic alternatives and to handle negotiations with potential buyers of its trailer operations.
According to CEO Frank B. Stevenson, "We will continue to aggressively develop the growing domestic and international potential of our core business products." The 89 year-old East Texas corporation set no specific timetable for the disposition of its trailer assets which have a net book value of approximately $25 million. Management stated that the company is unable, at this time, to estimate the financial impact of the decision reached today. Lufkin currently employs approximately 450 people in its trailer division which reported approximately $40 million in sales through the first nine months of 1991 and pre-tax net operating losses of $3.5 million for the same period. The company believes it is likely that there will be a charge in the fourth quarter with respect to the action it is announcing today. The board of directors believes that this decision will enable the company to focus on its remaining profitable core business segments of oil field products and power transmission products and to further develop the growing domestic and international market for these products. In separate actions the board of directors declared a cash dividend of $.40 per share on its common stock payable on Dec. 10, 1991 to shareholders of record on Dec. 1, 1991. They also elected Frank B. Stevenson to chairman of the board and chief executive officer and Herb J. Green to president and chief operating officer. -0- 11/20/91 /CONTACT: C. James Haley, Jr., of Lufkin Industries, Inc., 409-637-5555/ (LUFK) CO: Lufkin Industries, Inc. ST: Texas IN: TRN SU: DIV PER
KD-KW -- NY081 -- 5599 11/20/91 17:01 EST
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|Date:||Nov 20, 1991|
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