What's prime lumber processing plant real estate go for at the beginning of a long downturn in the economy?
My bet is a lot less then they think, if at all.
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Universal Forest Pdts Plans Plant Closures; Sees $6.8M 4Q Chg
Monday 01/21/2008 7:56 AM ET - Dow Jones News
DOW JONES NEWSWIRES
Universal Forest Products Inc. (UFPI) plans to close and sell a number of facilities in order to better align its manufacturing capacity with the current business environment, resulting in fourth quarter charges totaling about $6.8 million.
The Grand Rapids, Mich. wood products company said the closures will result in a charge of about $5.5 million to write down the value of certain property, plant and equipment and another $1.3 million charge for severance and other non-recurring expenses.
The facilities being closed include those in Stanfield, N.C., Gulfport, Miss., Elkhart, Ind., Westville, Ind., Sanford, N.C., and a portion of the operations in Thorndale, Ont.
The sale of the facilities, together with the sale of other excess real estate, is expected to generate about $38 million (pretax) in positive cash flow in 2008.
Universal Forest said it has also temporarily closed eight other operations and has consolidated them into existing facilities.
Universal Forest Products, which makes wood and wood-alternative products, plans to release fourth-quarter results on Feb. 6.
-Judy McKinnon; 416-306-2100; AskNewswires@dowjones.com > Dow Jones Newswires
01-21-08 0756ET
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