NEWS
U.S. Home & Garden Announces Fiscal Year 2000 Cost Savings Program and Realignment of Senior Management
SAN FRANCISCO, Aug 13, 1999 (BUSINESS WIRE via COMTEX) -- U.S. Home & Garden Inc. (Nasdaq: USHG) today announced that it has implemented its cost saving and expense reduction program that will generate a pretax bottom line contribution of an estimated $2 million for the fiscal year ending June 30, 2000. The Company is also realigning its management team to more effectively execute its previously announced restructuring and consolidation program.
The Company has contracted with FCI Supply Chain Solutions, a wholly owned subsidiary of Fritz Companies, Inc. (Nasdaq: FRTZ) to assist in certain areas of a company-wide initiative aimed at reducing costs. The first of these initiatives encompasses raw material and distribution and freight expenses. The consolidation of administrative activities and rationalization of production and distribution components are aimed at achieving potential efficiencies regarding shorter inventory cycles generating lower carrying costs. The goal will be improved cash flow and greater profitability.
The Company also announced the realignment of two senior management positions. Richard Raleigh, Vice President and Chief Operating Officer will relocate to the Company's Grand Rapids, Michigan facility. Dave Harper, Executive Vice President will relocate to the Company's headquarters. This realignment should allow for a more efficient use of senior management in the execution of the Company's cost saving initiatives.
Robert Kassel, Chairman and CEO of U.S. Home & Garden, stated, "We believe the strategic steps we are taking will better position the Company for future expansion and stronger earnings growth. The goal of improving efficiency and reducing costs is viewed as an ongoing process by our senior management team. We believe these changes will enhance the opportunity for additional cost savings. While we are streamlining certain functions, this realignment does not change our focus on building our brands and continuing our acquisition strategy. This new structure should allow for more efficient integration of other lawn and garden brands into the Company."
U.S. Home & Garden Inc. is a leading manufacturer and marketer of a broad range of consumer lawn and garden products including weed preventative landscape fabrics, weed trimmer replacement heads, fertilizer spikes, decorative landscape edging, shade cloth and root feeders which are sold under various recognized brand names including Weedblock(R), Jobe's(R), Weed Wizard(TM), Emerald Edge(R), Shade Fabric(TM), Ross(R), and Tensar(R). The Company markets its products through most large national home improvement and massmerchant retailers including Home Depot, Lowe's, Kmart, Wal-Mart and Home Base.
To learn more about U.S. Home & Garden Inc.'s business, visit its website at www.easygardener.com/ushg.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this press release that are not historical facts are forward looking statements that involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward looking statements. These risks and uncertainties include, but are not limited to, statements involving the likely range of earnings and revenues for the fiscal year ending June 30, 1999, the ability of the Company to negotiate a definitive agreement and consummate the transactions contemplated by the letter of intent with its proposed joint venture partner, successfully integrate any future businesses or product lines acquired into existing operations, the Company's growth strategy, customer concentration, outstanding indebtedness, dependence on weather conditions, seasonality, expansion, and other activities of competitors, changes in federal or state environmental laws and the administration of such laws, protection of trademarks and other proprietary rights, the general condition of the economy, uncertainty relating to the Company's Year 2000 compliance efforts and the possible failure of key suppliers and customers to be Year 2000 compliant, and other risks detailed in the Company's Securities and Exchange Commission filings. The words "anticipate" and "intend" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date the statement was made.
|
