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8-K - FORM 8-K - INSTEEL INDUSTRIES INC | g25465e8vk.htm |
Exhibit 99.1
Insteel Industries, Inc.
NEWS RELEASE
FOR IMMEDIATE RELEASE
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Contact: | Michael C. Gazmarian | ||
Vice President, Chief Financial Officer | ||||
and Treasurer | ||||
Insteel Industries, Inc. | ||||
336-786-2141, Ext. 3020 |
INSTEEL INDUSTRIES ANNOUNCES CONSOLIDATION OF TEXAS FACILITIES
MOUNT AIRY, N.C., December 8, 2010 Insteel Industries, Inc. (NasdaqGS: IIIN) today announced
that it was closing its leased facility in Houston, Texas and moving the manufacturing to its
Dayton, Texas plant. The production equipment at the Houston facility was acquired in connection
with Insteels recent purchase of certain of the assets of Ivy Steel & Wire, Inc. (Ivy).
The consolidation of the plants is expected to result in the elimination of 67 positions at the
Houston facility and the addition of 19 positions at the Dayton plant, which will be offered to the
Houston employees, for a net reduction of 48 positions. It is anticipated that operations at the
Houston facility will cease by the end of February 2011 and the equipment will be redeployed to
other Insteel locations.
Considering the ongoing weakness in our markets and reduced utilization levels at both Texas
facilities, we believe these actions are essential to reducing our operating costs and
strengthening our competitive position, said H.O. Woltz III, Insteels president and chief
executive officer. We do not take the decision to close a facility lightly and are committed to
making the transition as smooth as possible for the employees who are impacted.
About Insteel
Insteel is one of the nations largest manufacturers of steel wire reinforcing products for
concrete construction applications. Insteel manufactures and markets PC strand and welded wire
reinforcement, including concrete pipe reinforcement, engineered structural mesh (ESM) and
standard welded wire reinforcement. Insteels products are sold primarily to manufacturers of
concrete products that are used in nonresidential construction. Headquartered in Mount Airy, North
Carolina, Insteel operates eleven manufacturing facilities located in the United States.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. When used in this news release,
the words believes, anticipates, expects, estimates, plans, intends, may, should
and similar expressions are intended to identify forward-looking statements. Although Insteel
believes that its plans, intentions and expectations reflected in or suggested by such
forward-looking statements are reasonable, such forward-looking statements are subject to a number
of risks and uncertainties, and Insteel can provide no assurances that such plans, intentions or
expectations will be achieved. Many of these risks and uncertainties are discussed in detail in
Insteels periodic and other reports and statements that it files with the U.S. Securities and
Exchange Commission (the SEC), in particular in its Annual Report on
Form 10-K for the year ended October 2, 2010. You should carefully review these risks and
uncertainties.
(MORE)
1373 BOGGS DRIVE / MOUNT AIRY, NORTH CAROLINA 27030 / 336-786-2141/ FAX 336-786-2144
Page 2 of 2
All forward-looking statements attributable to Insteel or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements. All forward-looking
statements speak only to the respective dates on which such statements are made and Insteel does
not undertake and specifically declines any obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to reflect any future events or
circumstances after the date of such statements or to reflect the occurrence of anticipated or
unanticipated events, except as may be required by law.
It is not possible to anticipate and list all risks and uncertainties that may affect Insteels
future operations or financial performance; however, they include, but are not limited to, the
following: potential difficulties that may be encountered in integrating the acquisition of certain
assets of Ivy into Insteels existing business; potential difficulties in realizing synergies,
including reduced operating costs, with respect to Insteels acquisition of certain assets of Ivy
and the cessation of operations at the Houston, Texas facility; competitive and customer responses
to Insteels expanded business; general economic and competitive conditions in the markets in which
Insteel operates; credit market conditions and the relative availability of financing to Insteel,
its customers and the construction industry as a whole; the continuation of reduced spending for
nonresidential construction, particularly commercial construction, and the impact on demand for
Insteels products; the timing of the resolution of a new multi-year federal transportation funding
authorization and the magnitude of the infrastructure-related funding provided for that requires
the use of Insteels products; the severity and duration of the downturn in residential
construction and the impact on those portions of Insteels business that are correlated with the
housing sector; the cyclical nature of the steel and building material industries; fluctuations in
the cost and availability of Insteels primary raw material, hot-rolled steel wire rod, from
domestic and foreign suppliers; competitive pricing pressures and Insteels ability to raise
selling prices in order to recover increases in wire rod costs; changes in U.S. or foreign trade
policy affecting imports or exports of steel wire rod or Insteels products; unanticipated changes
in customer demand, order patterns and inventory levels; the impact of weak demand and reduced
capacity utilization levels on Insteels unit manufacturing costs; Insteels ability to further
develop the market for engineered structural mesh (ESM) and expand its shipments of ESM; legal,
environmental, economic or regulatory developments that significantly impact Insteels operating
costs; unanticipated plant outages, equipment failures or labor difficulties; continued escalation
in certain of Insteels operating costs; and the other risks and uncertainties discussed in
Insteels Annual Report on Form 10-K for the year ended October 2, 2010 and in other filings made
by Insteel with the SEC.
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Insteel Industries, Inc.