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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
April 8, 2002
(Date of Report (Date of Earliest Event Reported))
LA-Z-BOY INCORPORATED
(Exact Name of Registrant as Specified in Its Charter)
Michigan
(State or Other Jurisdiction of Incorporation)
1-9656
(Commission File Number)
38-0751137
(I.R.S. Employer Identification No.)
1284 N. Telegraph Road
Monroe, Michigan 48162
(Address of Principal Executive Offices, Including Zip Code)
(734) 241-4414
(Registrant's Telephone Number, Including Area Code)
[not applicable]
(Former Name or Former Address If Changed Since Last Report)
Item 9. Regulation FD Disclosure
Contact: Mark Stegeman (734) 241-4418 mark.stegeman@la-z-boy.com
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LA-Z-BOY ANNOUNCES ADDITIONAL RESTRUCTURING
MONROE MI, Apr. 8, 2002 - La-Z-Boy Incorporated (NYSE, PCX: LZB) announced today
that it is closing its Chilhowie, Virginia, plant and ceasing manufacturing
operations at its Granite Falls, North Carolina plant, in a further
restructuring of its casegoods (wood furniture) operations. In connection with
these actions, La-Z-Boy will take a pre-tax charge of $9 million, or $0.09 per
share on an after tax basis, in the quarter ending April 27, 2002. The largely
non-cash charge will primarily cover employee termination costs and the
writedown of certain fixed assets and inventories.
The Chilhowie facility of La-Z-Boy's American of Martinsville ("AOM")
hospitality furniture business will be closed as of mid-June, with a loss of
approximately 245 jobs. Production will be shifted to AOM's remaining plant in
Martinsville, Virginia, where approximately 75 new jobs will be added to handle
the additional volume. At the Granite Falls plant which has been producing
product primarily for La-Z-Boy's Hammary business unit, manufacturing operations
will be phased out by July and shifted to other La-Z-Boy manufacturing
facilities. Employment at Granite Falls will be reduced by 82 positions through
the elimination of part time positions and attrition. The facility will become
an expanded warehouse facility for Hammary, which currently imports most of its
product line.
La-Z-Boy president and CEO Jerry Kiser said "Business in the U.S. lodging
industry - AOM's major customer base - declined precipitously following the
terrorist attacks of September 11th. While we have seen some recent indications
of stabilization in the lodging industry, an increasing portion of the existing
business is moving to offshore sourcing." He added, "While we deeply regret the
need to close the Chilhowie facility and are saddened for our employees who will
lose their jobs as a result of this restructuring, we believe it is an essential
step in maintaining the well being of American of Martinsville and its remaining
workforce. When business conditions recover, AOM is well positioned as the
market leader, and will quickly return to historical profitability levels."
Kiser continued, "The actions announced today will further reduce the company's
domestic casegoods production square footage by about an additional 16 percent.
Including Chilhowie and Granite Falls, we will have reduced our total domestic
casegoods square footage by approximately 45% during the last twelve months. We
strongly believe this brings our domestic facilities in line with current
business trends, and do not foresee any further casegoods restructuring in any
near term time frame."
Commenting on the tone of business in the consumer furniture industry, Kiser
said, "Relative to current quarter guidance, we continue to expect a small
single digit percentage sales decline in our April 2002 fourth quarter, with
upholstery volume comparisons remaining substantially stronger than those in the
casegoods part of our business. And, we continue to anticipate that earnings for
the quarter ending April 27, 2002, excluding the $0.09 per share restructuring
charge announced today, will be in the range of $0.42 - $ 0.46 per share."
Forward-looking Information:
Any forward-looking statements contained in this report represent management's
current expectations, based on present information and current assumptions.
Actual results could differ materially from those anticipated or projected due
to a number of factors. These factors include, but are not limited to: changes
in consumer sentiment or demand, changes in housing sales, the impact of
terrorism, the impact of interest rate changes, the impact of imports, changes
in currency rates, competitive factors, operating factors, the effect of certain
restructuring actions, and other factors identified from time to time in the
company's reports filed with the Securities and Exchange Commission. The company
undertakes no obligation to update or revise any forward-looking statements,
either to reflect new developments, or for any other reason.
La-Z-Boy Background Information
With annual sales in excess of $2 billion, La-Z-Boy Incorporated is one of the
world's leading residential furniture producers. The La-Z-Boy Incorporated
family of companies produces furniture for every room of the home and office
under the brand names Alexvale, American Drew, Bauhaus, Centurion, Clayton
Marcus, England, Hammary, HickoryMark, Kincaid, La-Z-Boy, La-Z-Boy Contract
Furniture Group, Lea, Pennsylvania House and Sam Moore. And, under the American
of Martinsville brand name, La-Z-Boy is also a leading manufacturer of contract
furniture for the hospitality and assisted-living markets. Additional
information on the company is available at www.la-z-boy.com.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
LA-Z-BOY INCORPORATED
/s/ David M. Risley
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Date: April 8, 2002 David M. Risley
Senior VP and Chief Financial
Officer