Consumers Packaging Reports First Quarter
Financial Results
TORONTO, Canada--May 12, 1997-- Consumers Packaging Inc
(Toronto Stock Exchange:CGC) today reported results for the first
quarter ended March 31, 1997.
Consolidated gross revenues for the first quarter were $241.9
million as compared to $108.0 million reported in the same period
last year. Consolidated net loss for the quarter was $2.6
million, or $0.08 per share, compared with net earnings of
$827,000, or $0.03 per share for the first quarter of 1996.
Consolidated results for 1997 include the results of operations
for 55 days of Anchor Glass
Container Corporation (New Anchor) which is the new U.S.
corporation which commenced operations on February 5, 1997 to
conduct the business resulting from the purchase of certain of
the assets of the bankrupt company previously known as Anchor
Glass Container Corporation.
Without New Anchor, Consumers recorded an operating income of
$3.0 million on gross sales of $108.3 million in the first
quarter of 1997 compared with operating income of $3.5 million on
gross sales of $108.0 million for the first quarter of 1996.
Mr. John Ghaznavi, Chairman and Chief Executive Officer,
stated, "The first quarter of 1997 was a significant
positioning and strategic time for Consumers and New Anchor. The
results of New Anchor do not reflect the progress of an
aggressive business strategy which management believes will
significantly improve the profitability of New Anchor and
Consumers. This strategy includes a reduction in costs, improved
production planning and product mix as well as a program to
strengthen customer relations. A number of the steps to reduce
costs and improve capacity utilization have already been taken
with the closure of the Houston, Texas plant in February 1997,
and the closing of the Dayville, Connecticut plant effective May
1997. In addition, New Anchor reduced 25% of corporate overhead
effective March 1997. Following the Anchor acquisition, Consumers
closed a glass manufacturing plant in Hamilton, Ontario effective
May 1997, which will increase profitability and capacity
utilization."
Mr. Ghaznavi continued, "In April of 1997, Consumers
secured the private placement of U.S.$ 170 million principal
amount of 10.25% Senior Secured Notes due 2005 to put in place
permanent financing for the acquisition of Anchor and to improve
working capital of the Canadian operations. Earlier, the Company
closed an agreement to acquire a minority interest in a
glass-container manufacturing company in Israel and entered into
a joint venture to operate and expand a glass-container plant in
the Ukraine. We are pleased that the Company's
previously-announced plant in Italy is expected to commence
production in mid-1997."
Mr. Ghaznavi concluded, "Consumers' strategic acquisition
of Anchor Glass has benefited the industry greatly by reducing
capacity which will eventually lead to better pricing stability
and profit margins. As a result of the Company's strategic
cost-cutting, improved efficiency, increased capacity utilization
and foreign investments, Consumers looks forward to establishing
a leading role in the glass container industry."
Consumers Packaging Inc., headquartered in Canada, is a
leading international designer and producer of high quality glass
containers, with manufacturing facilities and business interests
in Canada, the U.S., Italy, Israel, and Belarus. Consumers is
Canada's only glass packaging producer and with six manufacturing
facilities, commands more than 80% of the glass packaging market,
and distributes its products both domestically and abroad.
Through its acquisition of Anchor Glass, Consumers is now
recognized as the third largest producer of glass containers in
North America.
CONSUMERS PACKAGING INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands of Cdn. dollars except per share data)
Three Months
Ended
March 31,
1997* 1996
Gross Sales $241,891 $107,984
Sales Deductions 21,814 7,072
Net Sales 220,077 100,912
Cost of Goods Sold 171,002 72,283
Gross Margin 49,075 28,629
Costs and Expenses
Distribution 13,453 7,247
Selling and administration 14,180 7,919
Depreciation and amortization 22,524 9,961
50,157 25,127
Income (loss) from operations (1,082) 3,502
Other expenses (90) ---
Interest expense (8,395) (2,675)
Minority Interest 6,978 ---
Net Income (loss) (2,589) 827
Earnings Per Share (0.08) 0.03
* Note: These financial results reflect the consolidation of
the operations of Anchor Glass Container Corporation from
February 5, 1997 to March 31, 1997.
CONTACT: Consumers Packaging Inc. William Lightner,
416/232-3150 or Investor Relations: Morgen-Walke Associates, Inc.
Donna N. Stein, APR/Keil Decker 212/850-5600 or Press Contact:
Morgen-Walke Associates, Inc. Stan Froelich, 212/850-5600
Court Denies Motion to File Competing Plan in Dow
Corning Chapter 11 Case
BAY CITY, Mich., May 12, 1997 - US Bankruptcy Judge Arthur J.
Spector, Eastern District of Michigan, ruled this afternoon that
exclusive right to have its plan of financial reorganization
considered in its Chapter 11 case. Denying a motion to have a
competing plan considered, Judge Spector ruled that Dow Corning's
period of exclusivity would continue until 21 days following a
final order that will eventually be entered by the court on how
claims in Dow Corning's bankruptcy should be resolved.
"This is extremely good news for moving this case
forward," commented Gary Anderson, Dow Corning President.
"Judge Spector recognized the extremely disruptive prospect
of simultaneously allowing competing plans to move forward at
this time. He also indicated that he expects this case to move
forward promptly. We intend to use this period to continue
serious negotiations toward a fair resolution of this
controversy. By focusing all parties on a single plan, we believe
that this case can move forward more quickly so that legitimate
claims can be fairly compensated."
SOURCE Dow Corning Corporation /CONTACT: T. Michael Jackson of
Dow Corning, 517-496-6443/
Grossman's announces reorganization
team
CANTON, Mass.--May 12, 1997-- Grossman's
Inc. (Nasdaq-GROS) announced today that the Board of
Directors has elected Thomas E. Arnold, Jr., President and Chief
Executive Officer on an interim basis, replacing Seymour Kroll,
who resigned effective today. Mr. Arnold, a current member of the
Board and its Audit Committee, will also continue to fulfill the
duties previously assigned to him by the Board as the person
principally responsible for Grossman's reorganization effort and
its related Chapter 11 bankruptcy proceedings.
Grossman's also announced that Dirck Iacobelli will assume the
responsibilities of Acting Executive Vice President, Chief
Financial Officer. Thomas A. Ford, who is Executive Vice-
President, Chief Operating Officer, and President-Bargain Outlet
Division, will now have overall responsibility for the
Contractors' Warehouse Division (Midwest and Western Region),
along with the Bargain Outlet Division. Mr. Ford has been
recently concentrating his efforts on the Bargain Outlet
Division. Both Mr. Iacobelli and Mr. Ford will report directly to
Mr. Arnold.
Mr. Arnold, 52, has extensive experience working with
financially distressed companies. He recently served as Chairman,
Board of Trustees, of three separate trusts responsible for the
orderly management and disposition of over $1 billion in assets
of Executive Life Insurance Company. Mr. Arnold also served as
court- appointed Chairman of the Board, Chief Executive Officer
and President of American Continental Corporation, formerly one
of the largest public finance-related real estate development
companies. Mr. Arnold was appointed following the resignation of
Charles Keating in conformance with the confirmed Plan of
Reorganization in the American Continental case.
Mr. Iacobelli, 48, has been a financial consultant to troubled
companies since 1986 and has worked closely with Mr. Arnold on a
number of assignments, including Executive Life Insurance Company
and American Continental Corporation matters. Mr. Iacobelli, who
holds an MBA from Amos Tuck School at Dartmouth College, has on
many occasions acted as chief financial officer (whether so
formally denominated or not) in engagements where the companies
were restructuring and, in many cases, disposing of assets.
Mr. Ford, 40, has been with Grossman's his entire 23 year
career. He has held positions of authority at all levels of
operations, including district manager, regional manager,
director of store operations, and Vice-President and General
Manager of the Bargain Outlet Division.
Robert K. Swanson, Chairman of the Board of Grossman's,
stated, "The Board is pleased that Tom Arnold has agreed to
assume the positions of President and CEO. He brings the skills
necessary to work effectively with Tom Ford in operations and
Dirck Iacobelli on the financial side. We have now assembled an
excellent team to work through the problems of the bankruptcy and
towards a reorganization."
Grossman's Inc. operates 15 stores under the name Contractors'
Warehouse in California, Indiana, Kentucky and Ohio, and 28
stores under the name Mr. 2nd's Bargain Outlet in Massachusetts,
New York and Rhode Island.
Statements contained in this release that are not based on
historical fact are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995.
Important factors, beyond the company's control, that could
cause actual results to differ materially from those in the
forward- looking statements include, but are not limited to, the
need for approvals by the Bankruptcy Court, competition,
stability of customer demand, and the sufficiency of its capital
resources. Undue reliance should not be placed on these
forward-looking statements, which speak only as of the date
hereof. The company undertakes no obligation to publicly release
revisions to these forward-looking statements to reflect events
or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
Grossman's Inc. press releases and public filings can be
accessed on the Internet through Business Wire's Home Page:
http://www.businesswire.com/cnn/gros.htm
Mr. 2nd's Bargain Outlet maintains a web site for product
information, store locations and feedback:
http://www.bargain-outlets.com
CONTACT: Grossman's Inc. Steven L. Shapiro, 617-830-4020
Harvard Industries, Inc., Retains
Houlihan Lokey Howard & Zukin To Assist Sale Of
Doehler-Jarvis Subsidiary
TAMPA, Fla., May 12, 1997 - Harvard Industries, Inc., a major
producer of OEM automotive parts and accessories, today announced
that it has engaged investment banking firm of Houlihan Lokey
Howard & Zukin to assist with the sale of the Company's
Doehler-Jarvis subsidiary - the largest independent manufacturer
of aluminum castings in North America. Houlihan Lokey will
immediately begin soliciting offers for Doehler-Jarvis.
"Harvard is committed to completing the sale of
Doehler-Jarvis on an expedited basis in order to help facilitate
out reorganization under Chapter 11 of the U.S. Bankruptcy Code,
announced previously," said John W. Adams, Harvard's
chairman.
"Doehler-Jarvis continues to be a key supplier of
automotive components to General Motors and Ford, and could
represent an attractive investment opportunity for a company that
can support its capital requirements," Adams explained.
Doehler-Jarvis's revenues for Harvard's fiscal year ended
September 30, 1996, were approximately $296 million. It operates
facilities located in Toledo, Ohio, Greeneville, Tenn., and
Pottstown, Penna., and employs approximately 2,000.
Through the years, Doehler-Jarvis has been associated with an
array of important "firsts" in high pressure die
casting: the first transmission case casting; the first one-piece
rack and pinion housing; the first die cast oil pan; the first
automotive cylinder block, and the first large die casting (a
transmission case) designed and built totally using computer
assisted design software. Doehler-Jarvis has a state-of-the-art
research and development center at its Toledo facility.
Harvard expects to seek bankruptcy court approval for the
highest and best offer that is obtained within 60 days.
Harvard Industries, Inc., through its subsidiaries, designs,
develops and manufactures a broad range of components for
original equipment manufacturers, producing cars and light trucks
in North America and abroad.
SOURCE Harvard Industries, Inc. /CONTACT: Gary W. Finger,
Houlihan Lokey, 212-582-5000; or Stephen J. Kasser, Public
Communications Inc., 813-226-2772, or 813-460-1422/