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News For LZB From The Last 14 Days
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April 16, 2014
16:22 EDTLZBLa-Z-Boy to restructure casegoods business, will take charge of $13M-$15M
La-Z-Boy announced it will restructure its casegoods business, which represents approximately 10% of revenue, by transitioning to an all-import model for its wood furniture. To accomplish the restructuring: During the second quarter of fiscal 2015, La-Z-Boy will discontinue casegoods production at its Hudson, North Carolina facility...The company will also exit the hospitality business as that furniture is also manufactured at the Hudson facility. The company will market for sale its youth furniture business, Lea Industries, as it does not align with the company's long-term strategic objectives. La-Z-Boy will consolidate and transition its warehouse and repair functions from its two North Wilkesboro, North Carolina facilities to Hudson. Kurt L. Darrow, Chairman, President and CEO of La-Z-Boy Incorporated, said, "After careful analysis and much consideration, we made the difficult decision to transition our casegoods operation to become solely an importer of wood furniture. We have implemented many changes to our casegoods manufacturing model over the past few years to be more competitive. However, in the final analysis, we determined we cannot generate enough domestic volume to support the size facility we operate in North Carolina and believe this move will strengthen our positioning and performance in the segment." As a result of the restructuring, La-Z-Boy will take pre-tax charges in the range of $13M to $15M, or 15c to 17c per share after tax, of which approximately 75% is expected to be non-cash. The majority of these charges will be incurred in the fourth quarter of the company's 2014 fiscal year and the remainder taken in the first half of fiscal 2015. In addition, the Lea business will be reported as discontinued operations commencing with Q414.

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