The ax man cometh, the share price goes up as the market seems to like it.
B: Moore Announces Plans To Close Its Research Center And Direct Future
Research Efforts Through Its Business Units Action Supports President & CEO's
Commitment to Reduce Costs by $100 Million and Intensify the Company's Focus on
Its Customers
BANNOCKBURN, Ill. & TORONTO, Jan 11, 2001 (BUSINESS WIRE) -- Robert G. Burton,
President and Chief Executive Officer of Moore Corporation (NYSE:MCL)(TSE:MCL.),
announced today the company will close its stand alone research and development
facility in Grand Island, NY and re-channel all of its future research efforts
through its various business units at greatly reduced costs.
This action supports Mr. Burton's previously stated objective to reduce costs by
$100 million and intensify the company's focus on its customers.
Mr. Burton stated:
"By eliminating the research facility, we are taking a significant step in
reducing operating expenses. Immediate savings from the action are expected to
be $12 to $15 million through the elimination of projects that do not support
our core business and the elimination today of approximately 130
research-related positions. An additional financial benefit should be generated
from the sale of the building later this year.
"This action in no way signals an end to Moore's commitment to future research
efforts that will benefit our customers. Research and development has been a
critical focus for Moore Corporation since 1909 and will continue to be a key
focus in our core business areas in the future, albeit at a much lower cost to
the company and a much higher value to our customers. By focusing research and
integrating its research activities into our core businesses, we are moving our
R&D activities closer to the customer where they belong. Since our business
units are the front line point-of-contact with our customers, they are best
positioned to proactively anticipate our customers' needs and develop future
products, services and solutions that add value to our customers' business
platforms."
Mr. Burton added:
"While the impact to employees is very much regrettable, this action is
absolutely necessary to get our costs in line and position the company for
improved results. This action is proof of our resolve and my personal commitment
for swift action and to taking whatever steps are necessary to secure Moore's
future. I want to thank the employees at Research who have contributed to our
success in the past and wish them the very best in the future."
Mr. Burton concluded:
"We are poised for great things at Moore Corporation. As changes take place, it
is important that we keep our eye on the ball and remember that we are a
terrific team working together toward a common goal. As we make key decisions in
the weeks and months to come, be assured our efforts are to benefit our
customers, shareholders and employees and to set the course for continued future
success. We are diligently working on behalf of our shareholders to add value to
their investment in Moore Corporation Limited."
Moore Corporation Limited is an international provider of products and services
that help companies communicate through print and digital technologies. As a
leading supplier of document formatted information, print outsourcing and data
based marketing, Moore designs, manufactures and delivers business communication
products, services and solutions to customers. Moore operates in complementary
marketplaces: Forms, Print Management and Related Products which includes Label
Systems and Customer Communication Services including personalized direct mail,
statement printing and database management. The Moore Internet address is
www.moore.com.
Burton, former Chairman, President and CEO of World Color Press, is also an
investor in Chancery Lane/GSC Investors, L.P., a private equity vehicle led by
Theodore Ammon and GSC Partners, a private investment firm, which on December
20, 2000 completed its previously announced strategic investment in Moore.
This news release contains statements relating to future results of Moore
(including certain anticipated, believed, planned, forecasted, expected,
targeted, and estimated results and Moore's outlook concerning future results)
that are "forward-looking statements" as defined in the U.S. Private Securities
Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance
on these forward-looking statements and any such forward-looking statements are
qualified in their entirety by reference to the following cautionary statements.
All forward-looking statements speak only as of the date hereof and are based on
current expectations and involve a number of assumptions, risks and
uncertainties that could cause the actual results to differ materially from such
forward-looking statements. Factors that could cause such material differences
include, without limitation, the following: the effects of paper price
fluctuations on Moore's forms operations, execution of key strategies, the rate
of migration from paper-based forms to digital formats, future growth rates in
Moore's Customer Communications Services businesses, the impact of currency
fluctuations in the countries in which Moore operates, general economic and
other factors beyond Moore's control, and other assumptions, risks and
uncertainties described from time to time in Moore's periodic filings with
securities regulators.
Inquiries from analysts and investors should be directed to James E. Lillie at
Moore Corporation Limited at (847) 607-7128. Media inquiries should be directed
to Stephen Forbes at Moore Corporation Limited at (416) 360-5270.
CONTACT: Moore Corporation Limited
Analyst/Investor Inquiries:
James E. Lillie, 847/607-7128
or
Moore Corporation Limited
Media Inquiries:
Stephen Forbes, 416/360-5270
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