EXHIBIT 99.1
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FOR IMMEDIATE RELEASE:
CONTACT: A. Christian Schauer
Chief Executive Officer
Triple S Plastics, Inc.
TEL (616) 327-2224
FAX (616) 327-2621
chris_schauer@tsss.com
TRIPLE S PLASTICS TO RE-ALIGN PRODUCTION CAPACITY;
UPDATE ON CLAIMS FOLLOWING MERGER TERMINATION
PORTAGE, Michigan, April 30, 2001 - Triple S Plastics, Inc.,
(NASDAQ:TSSS) announced today that, following a review of production
capacity needs at its two Texas facilities, it will be transferring
most production from its Ft. Worth plant to its Georgetown plant. The
Company stated that it is planning to maintain a full-capability
presence at the Ft. Worth facility and will return that plant to
normal production levels as the results from new sales initiatives
warrant. The production transfer is expected to be completed by July
1, 2001.
A. Christian Schauer, CEO of Triple S Plastics commented, "In light of
the reduction in expected sales and profits anticipated for fiscal
2002 and 2003, this adjustment postures us better to serve our
customers' needs and better balance our overhead structure as future
anticipated business materializes."
The Company expects to record a one-time net after tax charge of
approximately $1,400,000 in its fourth quarter ended March 31, 2001
for expenses related to the terminated merger with Eimo Oyj and costs
associated with the Ft. Worth re-alignment and an impairment charge.
Financial results for the year ended March 31, 2001 are expected to be
released on May 4, 2001. Preliminary results show sales for the year
ended March 31, 2001 of approximately $155,000,000 and profits at a
level in excess of the prior year, even after deducting the one-time
merger costs, and the re-alignment and impairment charge.
Triple S also announced that a dispute has arisen regarding the legal
effect of the separate termination notices given by Triple S and Eimo
in connection with the termination in March of the planned merger of
the two companies. Eimo has filed an action in federal court in
Delaware seeking damages from Triple S, claiming that the termination
of the merger agreement by Triple S, after Eimo itself had given
notice of termination, constituted a breach of the agreement that
entitles Eimo to damages consisting of certain expenses not exceeding
$1 million, a termination fee of $6.4 million and other unspecified
damages. Triple S believes that Eimo's suit is without merit and has
filed a motion to dismiss the case for failure to state a cause of
action. Triple S will defend the action vigorously and does not
believe that it owes Eimo a termination fee, expenses or other
damages.
Certain matters discussed in this release constitute forward-looking
statements, which are necessarily subject to certain risks and
uncertainties, and they may change in a material way based upon
various market, industry and other important factors, including the
risk that the new sales initiatives do not result in additional
business for the Company. From time to time, the Company identifies
factors in its Form 10-K filed with the Securities and Exchange
Commission and its other interim reports that may influence future
results, and the Company recommends that investors consult those
reports. The Company cautions investors that actual results may
differ materially from the forward-looking statements contained in
this release.
Triple S Plastics, Inc. is a plastics engineering services company,
serving the Telecommunications, Medical, Automotive and other
industries with rapid prototyping and design models, mold design and
engineering services, mold manufacturing, plastic injection molding,
and post molding assembly and finishing operations. The Company has
production facilities in Michigan, Texas, New York and Brazil. More
information about Triple S Plastics, Inc. is available at
www.tsss.com.
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