Furniture Brands International Inc · 8-K · For 6/5/01

Filed On 6/5/01 5:08pm ET   ·   SEC File 1-00091   ·   Accession Number 50957-1-500007

Current Report   ·   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         6±    33K 

Document Table of Contents

8-K
1st "Page" of 3
TOC
Top
Previous
Next
Bottom
Just 1st
 
Sponsored Ads...


                    June 5, 2001

Securities and Exchange Commission                                              
450 Fifth Street, N.W.                                                          
Judiciary Plaza                                                                 
Washington, DC  20549                                                           

 RE:      Form 8-K
                                      Furniture Brands International, Inc.

Dear Sir or Madam:                                                              

   Submitted herewith for filing is the above-referenced report with
exhibit.                                                                        

This filing is being affected by direct transmission to the   
Commission's EDGAR system.                                                      

                                 Very truly yours,

                             /s/  Robert L. Kaintz
                                           Assistant General Counsel

RLK/rsl                                                                         
Enclosure                                                                       

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
 Securities Exchange Act of 1934

Date of Report (date of earliest event reported): June 4, 2001 (June 4, 2001) 

Furniture Brands International, Inc.  
(Exact name of Registrant as specified in charter)        

Delaware                   I-91                  43-0337683       
------------------------    ---------------           --------------            
(State of Incorporation)     (Commission              (IRS Employer             
                           File Number)             Identification Number)

101 South Hanley Road, St. Louis, Missouri 63105
------------------------------------------------
  (Address of principal executive offices)

(314) 863-1100
-------------------------------     
(Registrant's telephone number)     

8-K
2nd "Page" of 3
TOC
1st
Previous
Next
Bottom
Just 2nd

Item  5. Other Matters                                                          

     On June 4, 2001,  the Company  announced  the merger of the  operations  of
Action  Industries,  Inc. and The Lane Company,  Incorporated  into their parent
company,  Lane  Furniture  Industries,  Inc. The  consolidation  will entail the
closing  of  three  manufacturing   facilities  and  the  Lane  headquarters  in
Altavista,  Virginia, with the elimination of over 1,000 jobs. The consolidation
will be  completed by December  31,  2001.  With these plant  closings and other
personnel  reductions,  the  Company  will have  permanently  reduced  its total
employment by 12% and its manufacturing capacity by 15%.                        

     To implement the merger the Company will record a  restructuring  charge of
$0.20 to $0.25 per share over the  remainder  of the year.  Most of this  charge
will be recorded in the second  quarter and will represent a non-cash write down
of manufacturing  and office  facilities to realizable value. The balance of the
charge,  representing  employee  retention  and  other  closing  costs,  will be
recorded  as incurred  throughout  the second  half of 2001.  The  Company  also
announced that it believes its second quarter  revenues could be down 12% to 15%
from the same  quarter  last year.  Second  quarter  earnings  per share are now
expected to be in the $0.25 to $0.30 range, excluding the restructuring charge. 

Item  7. Financial Statements and Exhibits                                      

(c)      Exhibits                                             

99       Press Release, dated June 4, 2001  

99       Press Release, dated June 4, 2001  

8-K
Last "Page" of 3
TOC
1st
Previous
Next
Bottom
Just 3rd

 SIGNATURE

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.                                          

                                  Furniture Brands International, Inc.

               By:  /s/  Steven W. Alstadt
                                   ---------------------------------------
             Steven W. Alstadt
                                   Controller and Chief Accounting Officer

Dated:   June 5, 2001                                                           

INFORMATION                                                                     
101 South Hanley Road                                                         
St. Louis, Missouri 63105                                                     
314-863-1100                                                                  

FOR IMMEDIATE RELEASE                                                           

     FURNITURE BRANDS INTERNATIONAL REPORTS ON DOMESTIC  MANUFACTURING  CAPACITY
REDUCTIONS;                                                                     

COMMENTS ON OUTLOOK FOR SECOND QUARTER

St. Louis, Missouri,  June 4, 2001 - Furniture Brands International (NYSE: FBN),
one of the  industry's  largest  residential  furniture  manufacturers  and  the
largest  producer of case goods (wood)  furniture for the home,  reported  that,
including today's  announcement of additional plant closings and other personnel
reductions,  the company will have  permanently  reduced its total employment by
12% and its manufacturing capacity by 15%. These downsizing activities should be
completed by the end of the year.                                               

In a separate  press release issued  earlier  today,  the company  announced the
merger  of the  operations  of  Action  Industries,  Inc.  and The Lane  Company
Incorporated into their parent company, Lane Furniture Industries,  Inc., one of
the largest full-line  residential  furniture  manufacturers in the country. The
consolidation will entail the closing of three manufacturing  facilities and the
Lane  headquarters  in Altavista,  Virginia,  with the elimination of over 1,000
jobs.                                                                           

W.G. (Mickey) Holliman,  Chairman,  President and Chief Executive Officer, said,
"The plant closings we have just announced, coupled with other personnel actions
taken  since  the  first  of the  year,  will  eliminate  over  2,400  jobs  and
permanently  close 11 of our manufacturing  facilities.  Over 2.8 million square
feet  of  domestic   manufacturing   space  will  be  vacated  and  sold.   More
specifically,  the  closures  represent  over  20% of our  domestic  case  goods
manufacturing capacity."                                                        

"These  actions were  necessary to address a growing  problem with domestic case
goods  capacity  utilization.  The  company's  increasing  emphasis  on sourcing
products  from  offshore  --  particularly  case goods -- and the success of our
import  infrastructure  have made it difficult to maintain adequate  utilization
rates within a number of our plants.  The soft business  climate has  aggravated
this  situation,  requiring  us to  accelerate  our  planned  movement to a more
balanced sourcing strategy -- emphasizing worldwide product procurement."       

Commenting on the Lane  reorganization  announcement  issued earlier today,  Mr.
Holliman  stated,  "To implement the merger of the  operations of Action and The
Lane Company into Lane Furniture Industries, Furniture Brands International will
record a restructuring  charge of $0.20 to $0.25 per share over the remainder of
this year.  Most of this charge will be recorded in the second  quarter and will
represent  a non-cash  write down of  manufacturing  and  office  facilities  to
realizable value. The balance of the charge, representing employee retention and
other closing costs, will be recorded as incurred  throughout the second half of
2001."                                                                          

Commenting on current  business  activity,  Mr. Holliman said,  "Because we have
shortened  our  lead-times  significantly,  we have  only 4-5  weeks of  forward
visibility, and forecasting earnings in this unsettled environment is difficult.
The retail furniture  business  remains very weak.  Today, we believe our second
quarter  revenues  could be down 12% to 15% from the same quarter last year. Our
second  quarter  earnings per share are now expected to be in the $0.25 to $0.30
range,  excluding  the  restructuring  charge.  We will provide an update on our
full-year expectations when second quarter results are released in July."       

"Cash flow  continues to be very  favorable,  which should  result in additional
long-term debt paydown in the second quarter following on the $47 million repaid
in the first  quarter.  In addition,  to take  advantage of today's low interest
rates,  we have entered into a series of interest rate swaps to fix the interest
on $300  million  of our debt for the  next  three  years.  Going  forward,  our
effective  interest rate will be in the 5-1/2% range.  This will largely free us
from floating  interest rate swings and will provide us with more free cash flow
as  our  interest  expense  continues  to  decrease.  We  look  forward  to  the
flexibility  our  strong  cash flow  gives us as we  consider  future  strategic
alternatives,  including further debt reduction, share repurchases, or strategic
acquisitions."                                                                  

Mr. Holliman concluded,  "We are totally focused on improving  profitability and
increasing  long-term  shareholder  value.  As we  continue  to  streamline  our
businesses we will address costs  wherever they are found.  This is the time for
bold leadership,  and we will do whatever it takes to strengthen our competitive
advantage.  When our business turns around we will be well-positioned to realize
outstanding profit margins and earnings performance."                           

Furniture  Brands  International  is one of  America's  largest  home  furniture
manufacturers,  marketing its products under three of the best-known brand names
in the  industry - Broyhill,  Lane and  Thomasville.  The  company  manufactures
furniture  across a broad  spectrum  of price  categories  and  distributes  its
products through an extensive system of independently  owned national,  regional
and local retailers.                                                            

This release contains forward-looking statements within the meaning of the "safe
harbor"  provisions  of the Private  Securities  Litigation  Reform Act of 1995.
These forward looking  statements  include the company's  expected  earnings per
share,  profit  margins,  and cash flow,  the  effects of certain  manufacturing
realignments  and other  business  strategies,  the  prospects  for the  overall
business  environment,  and other  statements  containing  the words  "expects,"
"anticipates," "estimates," "believes," and words of similar import. The company
cautions investors that any such  forward-looking  statements are not guarantees
of future  performance  and that  certain  factors may cause  actual  results to
differ materially from those in the forward-looking statements. Such factors may
include:  overall  business and economic  conditions and growth in the furniture
industry; changes in customer spending patterns and demand for home furnishings;
competitive  factors,  such as design and marketing  efforts by other  furniture
manufacturers;  pricing pressures; success of the marketing efforts of retailers
and the  prospects  for further  customer  failures;  the  company's  success in
furniture design and manufacture;  the effects of manufacturing realignments and
cost savings  programs;  and other risk factors  listed from time to time in the
company's  public  releases  and SEC reports,  including  but not limited to the
report on Form 10-Q for the quarter  ended  March 31,  2001.  The  company  also
cautions  investors  that our forecast for the second  quarter and the year 2001
represent  our outlook only as of this date,  and we undertake no  obligation to
update or revise  any  forward-looking  statements,  whether  as a result of new
developments or otherwise.                                                      

INFORMATION                                                                     
101 South Hanley Road                                                         
St. Louis, Missouri  63105                                                    
314-863-1100                                                                  

FURNITURE BRANDS INTERNATIONAL ANNOUNCES
REORGANIZATION OF THE LANE COMPANY

 WILL CLOSE THREE MANUFACTURING FACILITIES IN VIRGINIA

St. Louis,  Missouri,  June 4, 2001 - Furniture Brands International  (NYSE:FBN)
announced today the merger of the operations of Action Industries,  Inc. and The
Lane Company Incorporated into its Lane Furniture  Industries,  Inc. subsidiary,
one of the largest full-line furniture manufacturers in the United States.      

Lane  Furniture  Industries  presently  has  two  primary  subsidiaries,  Action
Industries  and  The  Lane  Company.   Action   Industries,   based  in  Tupelo,
Mississippi,  is one of the country's largest manufacturers of reclining, motion
and  stationary  upholstered  furniture.  The Lane Company,  based in Altavista,
Virginia,  has two  operating  divisions.  The  Lane  Division  is a case  goods
operation focusing on whole home wood furniture collections,  occasional tables,
youth  furniture,  and cedar chests.  The announced  reorganization  entails the
merger  of  the  operations  of  the  Lane  Division  with  Action   Industries.
Laneventure, based in Conover, North Carolina, is the other division of The Lane
Company  and is a  manufacturer  and  importer  of high  quality  indoor/outdoor
furniture.  Laneventure's  operations  will  not be  affected  by the  announced
consolidation.                                                                  

The  consolidation  will begin immediately and will be completed by December 31,
2001. The Lane Division's three manufacturing facilities and its headquarters in
Altavista,  Virginia  will be  closed  permanently.  Continuing  administrative,
logistic,  sales and marketing functions will be relocated to the Lane Furniture
Industries  offices  in Tupelo,  Mississippi.  The  Action  Industries  and Lane
Division  sales forces will be merged under one  management  group.  Jerry Ruff,
currently  President  of the  Lane  Division,  will  become  President  of  Lane
International  and will be responsible  for all Lane  international  operations,
including  both import and export.  Mr. Ruff will  continue to report to John T.
(Tom) Foy, President and Chief Executive Officer of Lane Furniture Industries.  

Mr. Foy stated: "An increasing percentage of the Lane Division's product line is
represented by high quality imported products. These imported products represent
a significant  value to our customers,  while  producing  higher profit margins.
However,  the higher margins are being offset by the costs we are incurring from
underutilized domestic manufacturing capacity. This consolidation will allow the
Lane Division to complete its  transition  from a  manufacturing  to a marketing
company, with improved profitability and better values for our customers."      

Mr. Foy  continued:  "This  transition  will entail the loss of over 1,000 jobs,
something we do not  undertake  lightly.  The  employees  have been a tremendous
asset for our company,  and we greatly  appreciate their many years of dedicated
service.  However, the closing of the manufacturing facilities and the Altavista
headquarters  will  enable us to leverage  our  management,  transportation  and
customer  service  functions  by  merging  them with the  veteran  staff of Lane
employees  located in Tupelo.  Lane case goods and  occasional  products will be
warehoused in Tupelo and a potential  Western  location,  and will be shipped in
combination with its upholstered  products.  Service on all of our products will
improve   significantly   by  utilizing  Action   Transport,   Action's  massive
transportation operation, as its primary carrier."                              

"This new organizational structure combines all products marketed under the Lane
brand  name,  and  forms  a  comprehensive   furniture   manufacturer  featuring
stationary leather upholstery, motion furniture,  recliners,  sleepers, bedroom,
dining  room,  occasional  tables,  and  cedar  chests.  We  are  combining  the
outstanding  Action Industries  operations with the tremendous  potential in the
Lane  Division,  and creating one of the largest  manufacturers  in our industry
under  the  powerful  Lane  brand  name -- a name  that  will  continue  to gain
importance as we make it the focus of our national and local dealer  advertising
campaigns."                                                                     

Commenting  on  the  new  organizational   structure,  W.G.  (Mickey)  Holliman,
Chairman,   President   and  Chief   Executive   Officer  of  Furniture   Brands
International stated: "The merger of the operations of Action Industries and the
Lane Division is an important step forward in our previously  announced  efforts
to reduce  costs and increase  our  emphasis on imported  products.  In the near
term, these changes should for the most part be transparent to our customers and
suppliers,  providing  enhanced  levels of customer  service  arising out of the
combined  operations.  Tom Foy has had leadership  responsibility  over all Lane
companies  since January  2000.  With this merger,  we will realize  significant
additional synergies from the combined operations."                             

Furniture  Brands  International  is one of  America's  largest  home  furniture
manufacturers,  marketing its products under three of the best-known brand names
in the  industry - Broyhill,  Lane and  Thomasville.  The  company  manufactures
furniture  across a broad  spectrum  of price  categories  and  distributes  its
products through an extensive system of independently  owned national,  regional
and local retailers.                                                            

This release contains forward-looking statements within the meaning of the "safe
harbor"  provisions  of the Private  Securities  Litigation  Reform Act of 1995.
These  forward  looking   statements   include  the  effects  of  the  announced
restructuring,   and  other   statements   containing   the   words   "expects,"
"anticipates,"  "believes,"  and words of similar import.  The company  cautions
investors that any such forward-looking  statements are not guarantees of future
performance  and that  certain  factors  may  cause  actual  results  to  differ
materially  from  those in the  forward-looking  statements.  Such  factors  may
include:  overall  business and economic  conditions and growth in the furniture
industry; changes in customer spending patterns and demand for home furnishings;
competitive  factors,  such as design and marketing  efforts by other  furniture
manufacturers;  pricing pressures; success of the marketing efforts of retailers
and the  prospects  for further  customer  failures;  the  company's  success in
furniture design and manufacture;  the effects of manufacturing realignments and
cost savings  programs;  and other risk factors  listed from time to time in the
company's public releases and SEC reports.                                      

Dates Referenced Herein   and   Documents Incorporated By Reference

				Referenced-On Page
This 8-K Filing		Date		First		Last			Other Filings
		3/31/01		3					10-Q
		6/4/01		1		3
Filed On / Filed As Of / For The Period Ended		6/5/01		1		3
		12/31/01		2		3			10-K
Top									List All Filings