Published:
Ethan Allen Announces Plans to Realign its Case Goods Manufacturing
DANBURY, Conn. - (BUSINESS WIRE) - Ethan Allen Interiors Inc. ("Ethan Allen" or "Company" ) (NYSE:ETH) today
announced the consolidation of its Andover, Maine sawmill and dimension
mill to its Beecher Falls, Vermont sawmill and dimension mill
operations. The Company will also consolidate machining, assembly and
finishing operations from its Beecher Falls, Vermont plant to its
Orleans, Vermont plant. The Company will also continue operations in its
case goods plant at Old Fort, North Carolina. This consolidation will
impact approximately 60 associates at Andover, Maine and approximately
260 at the Beecher Falls location.
The Company expects to record pre-tax restructuring, impairment,
severance and other related charges of approximately $12.9 to $13.5
million, the majority of which will be non-cash in nature representing
an after-tax impact of $8.2 to $8.6 million or $0.28 to $0.30 per
diluted share. Most of this charge is expected to be recorded in the
quarter ending June 30, 2009.
Farooq Kathwari, Chairman and CEO commented, "We very much regret the
impact of this realignment to our Andover and affected Beecher Falls
associates. This consolidation provides an opportunity to our remaining
associates in Vermont to resume a more normal work schedule."
Mr. Kathwari further commented, "While the severe recession has resulted
in many challenges it has also accelerated our process of reinvention.
We have one of the largest U.S. based home furnishings manufacturing
operations, which we are committed to maintaining. Currently about 65%
of our products are made in the U.S. This realignment provides us an
opportunity to maintain a competitive advantage from manufacturing in
the U.S."
About Ethan Allen
Ethan Allen Interiors Inc. is a leading manufacturer and retailer of
quality home furnishings. The Company sells a full range of furniture
products and decorative accessories through a network as of March 31,
2009 of 290 design centers in the United States and abroad, of which 159
were Company owned. Ethan Allen operates eight manufacturing facilities
in the United States, which include two sawmills, and one manufacturing
facility in Mexico. For more information on Ethan Allen's products and
services, visit ethanallen.com.
Ethan Allen Interiors Inc.
Investors / Media:
David R. Callen,
203-743-8305
Vice President Finance & Treasurer
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