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Steel Processors
Gibraltar to Sell the Assets and Cease the Operations of Its Hubbell Steel Subsidiary
Oct. 4, 2007 Gibraltar Industries, Inc. is selling the assets of and ceasing operations of its Hubbell Steel subsidiary.
“This decision is part of our plan to sell non-core assets and businesses, and it is consistent with earlier actions to improve the performance of our Processed Metal Products segment, including last year’s sale of our strapping operations, the elimination of our Duferco Farrell joint venture earlier this year, and the consolidation of two Buffalo-area steel processing facilities into a single location,” said Brian J. Lipke, Gibraltar’s Chairman and CEO.
Gibraltar acquired Hubbell Steel, a service center specializing in coated and painted products, in 1995. Hubbell has annualized sales of approximately $45 million, operates two facilities (one near Chicago and another in Birmingham, Alabama), and employs approximately 40 people. Gibraltar expects to complete the Hubbell shutdown and the sale of its assets before the end of this year.
“Our decision to exit this business—together with our recent acquisitions and ongoing efforts to improve our existing operations—are all steps we are taking to strengthen the performance characteristics of Gibraltar,” said Henning N. Kornbrekke, Gibraltar’s President and Chief Operating Officer. “We expect that this shutdown will positively impact our financial performance on an ongoing basis.”
In its quarterly financial statements, Gibraltar will report Hubbell’s results—including losses resulting from the differences between the carrying value and the net realizable value of its assets including goodwill—as discontinued operations. Gibraltar expects to incur a charge in the range of $13 to $16 million as a result of this action, and will provide additional detail when it reports its third-quarter earnings on October 31.
“We will continue to focus our resources and capital on those areas that provide the best strategic fit and which will produce the highest returns for our shareholders,” concluded Lipke.
Gibraltar Industries is a leading manufacturer, processor, and distributor of products for the building, industrial, and vehicular markets. The company serves customers in a variety of industries in all 50 states and throughout the world. It has approximately 4000 employees and operates 84 facilities in 27 states, Canada, China, England, Germany, and Poland.