Printer Friendly

MULTI-C0LOR ANNOUNCES RESTRUCTURING AND SECOND QUARTER CHARGE

 CINCINNATI, Sept. 21 /PRNewswire/ -- Multi-Color Corporation (NASDAQ: LABL) today announced a restructuring of its operations and the projected costs associated with this restructuring.
 The restructuring is designed to improve profitability by consolidating manufacturing facilities and eliminating unprofitable business activities. The company will consolidate its lithographic label manufacturing operations and as a result close its Lockport, Illinois printing facility. This consolidation as well as other changes are designed to increase profitability through increased economies of scale at its remaining facilities and to shift production of certain labels to lower cost printing technologies.
 The company said that in connection with this restructuring it expects to record a pretax charge of $3,900,000 or $2,340,000 after tax ($1.05 per share) in the second quarter ending Sept. 26, 1993. The company also anticipates reporting a loss during the second quarter principally due to a continuation of the unexpected weakness in conventional label sales and excess capacity in the printing plants producing conventional labels.
 John C. Court, president and chief executive officer, commented, "Substantially all of the restructuring will take place over the next six months. The steps we are taking reflect our determination to address overcapacity in our conventional label business and to improve the company's ongoing profitability. Weakness in conventional label sales over the past several years has offset the significant growth in sales of our new products. The restructuring will enhance our ability to exploit new businesses and will not adversely impact our development of new products. We anticipate operating cost savings resulting from the restructuring will approximately equal the restructuring charge over the next three years."
 Multi-Color Corporation is one of the largest manufacturers of printed labels for branded consumer products in the United States. The company's shares are traded over-the-counter under the National Market System symbol LABL.
 -0- 9/21/93
 /CONTACT: John D. Littlehale, vice president/secretary of Multi-Color Corporation, 513-321-5381/
 (LABL)


CO: Multi-Color Corporation ST: Ohio IN: PAP SU: RCN

BM-SM -- CL012 -- 3999 09/21/93 08:34 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 21, 1993
Words:335
Previous Article:UPS MAKES NEW ECONOMIC OFFER TO TEAMSTERS UPS AND TEAMSTERS UNION CONTINUE TO NEGOTIATE THROUGH WEEKEND
Next Article:ALC COMPLETES SECONDARY STOCK OFFERING
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters