NEWS RELEASE
CONTACT:
Robert L. Montgomery, Jr.
Executive Vice President and Chief Financial Officer
Columbus McKinnon Corporation
716-689-5405
COLUMBUS MCKINNON CORPORATION ANNOUNCES CHAIN MANUFACTURING CONSOLIDATION PLAN
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Amherst, New York, November 13, 2002 - Columbus McKinnon Corporation (Nasdaq:
CMCO) today announced plans to consolidate its Columbus McKinnon Limited chain
manufacturing operations located in Cobourg, Ontario, Canada, into two of its
other North American chain manufacturing facilities. The estimated annual
recurring pretax cost savings expected to result from this consolidation is $2.1
million with one-time implementation costs of $1.6 million, of which $0.8
million will be recorded this quarter as a restructuring charge.
"Chain manufacturing consolidation is another major step in Columbus McKinnon's
Strategic Plan," said Timothy T. Tevens, President and Chief Executive Officer,
"and the benefits of consolidating our chain manufacturing operations are
significant and in the overall best interests of all our stakeholders." Tevens
stated, "The consolidation process is expected to be completed by May 2003,
following an orderly integration of chain manufacturing production into Columbus
McKinnon's chain manufacturing facilities located in Lexington, TN, and Santiago
Tianguistenco, Mexico. We will work with our affected associates to assist them
with positions in other Columbus McKinnon locations and, for those who do not
relocate, will provide severance and outplacement support."
Columbus McKinnon will continue to aggressively pursue the Canadian market with
its Cobourg, Ontario and Edmonton, Alberta warehouses and a comprehensive
product line of chain, forgings, hoists, and other material handling products.
Tevens added, "Our Canadian Sales force will remain fully intact and we remain
committed to serving our valued customers in Canada as we have in the past with
our high quality products, delivered on-time at a competitive price."
As previously announced, Columbus McKinnon continues to review its current
manufacturing and facility configuration to ensure it has the most efficient and
effective organization to meet the changing requirements of its markets. The
facility rationalization projects initiated in fiscal 2002, including the
closure of its Yale Hoist manufacturing facility in Forrest City, Arkansas and
Lister Bolt & Chain plant in Richmond, British Columbia, are complete and have
been successfully integrated into other Columbus McKinnon manufacturing
facilities. The annual pretax cost savings resulting from these projects are
approximately $8.5 million.
-more-
In addition to the continued rationalization process, Columbus McKinnon has
expanded the implementation of lean manufacturing improvement activities to
fifteen of its facilities. "We are pleased with our lean manufacturing
implementation progress to-date," said Tevens, "and we are realizing measurable
results in improving productivity, reducing inventory, and freeing-up
manufacturing space, while simultaneously improving our customer service. We
also look forward to realizing additional financial benefits from our lean
initiative as we continue the implementation in fiscal 2003 and 2004."
These strategic initiatives, with others already in process, are expected to
improve Columbus McKinnon's competitive position, customer service and increase
cash flow for debt reduction purposes.
o o o o o o o o
Columbus McKinnon is a leading worldwide designer and manufacturer of material
handling products, systems and services which efficiently and ergonomically
move, lift, position or secure material. Key products include hoists, cranes,
chain and forged attachments. The Company is focused on commercial and
industrial applications that require the safety and quality provided by its
superior design and engineering know-how. Comprehensive information on Columbus
McKinnon is available on its web site at HTTP://WWW.CMWORKS.COM
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements include,
but are not limited to, statements concerning future revenue and earnings,
involve known and unknown risks, uncertainties and other factors that could
cause the actual results of the Company to differ materially from the results
expressed or implied by such statements, including general economic and business
conditions, conditions affecting the industries served by the Company and its
subsidiaries, conditions affecting the Company's customers and suppliers,
competitor responses to the Company's products and services, the overall market
acceptance of such products and services, the Company's ability to renegotiate
its senior debt, and other factors disclosed in the Company's periodic reports
filed with the Securities and Exchange Commission. The Company assumes no
obligation to update the forward-looking information contained in this release.