Cleaning & Restoration Breaking News

Interface announces Third Quarter restructuring charge

Interface, Inc. announces pre-tax quarter restructuring charge of $60 million.

ATLANTA -- Interface, Inc. (Nasdaq:IFSIA), a manufacturer of modular carpet and vinyl flooring, will record a pre-tax restructuring charge in the third quarter of 2001 of approximately $60 million, or 80-cents per diluted share after tax, which it attributes to a downswing in the worldwide broadloom and U.S. access flooring businesses.

The restructuring charge is comprised of approximately $21 million of cash expenditures for severance benefits and relocation costs and approximately $39 million of non-cash charges, primarily for the write-down of the carrying value and disposal of certain impaired assets, including goodwill. Excluding the restructuring charge, Interface said it expects to generate third quarter earnings of 1-cent to 3-cents per share on revenues of approximately $255 to $265 million.

The non-recurring charge reflects the Interface's withdrawal from the European broadloom market; facilities consolidation in its raised/access flooring operations; further rationalization of the U.S. broadloom operations; and a worldwide workforce reduction of 850 employee, and consolidation of certain non-strategic Re:Source dealer locations.

Interface (www.interfaceinc.com)said the restructuring will be completed by the second quarter of 2002.

"The economy continued to lag through the third quarter, which affected demand for all of our products, although the market for our modular carpet segment was impacted less than our other segments," said Daniel T. Hendrix, president and CEO. "While we cannot control our business climate, we can address the operations under our management."

Interface, Inc. is the world's largest manufacturer of modular carpet under the Interface, Heuga, Bentley and Prince Street brands, and through its Bentley Mills, Prince Street and Firth brands, enjoys a leading position in the high quality, designer-oriented segment of the broadloom and woven carpet market. It also provides specialized carpet replacement, installation and maintenance services through its Re:Source Americas service network.

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

The 2014 Experience Conference and Exhibition

A look in photos at the 2014 Experience Conference and Exhibition, which was held from April 24-26 at the Embassy Suites Convention Center and Spa in Frisco, Texas.

Podcasts

Beginning April 21, Google will start judging websites based on their mobile friendliness. What exactly does this mean to you cleaning website? Find out in the latest edition of The Hitman Advertising Show, which will also cover tips and suggestions on getting mobile compliant.
More Podcasts

ICS Cleaning Specialist Magazine

CoverImage

2015 April

The April ICS issue features content on concrete polishing, green cleaning, air duct cleaning, injection sprayers and new products.

Table Of Contents Subscribe

Janitorial Work

In addition to residential and commercial carpet cleaning, do you do any janitorial work on the side?
View Results Poll Archive

THE ICS STORE

FinalCover.gif
The Carpet Cleaner's Book of Unlimited Success! (ebook)

Don’t worry about the recession or about your competition.  Now you can be the owner of over 400 ways for carpet cleaning professionals to make more money and get more jobs!

More Products

ICS DIRECTORY AND BUYING GUIDE

Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view

STAY CONNECTED

facebook_40.png twitter_40px.png youtube_40px.png

TRUCKMOUNT EQUIPMENT AND ACCESSORIES GUIDE

Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view