La-Z-Boy Announces Plant Restructuring Plans

Apr 25, 2001, 01:00 ET from La-Z-Boy Incorporated

    MONROE, Mich., April 25 /PRNewswire/ -- La-Z-Boy Incorporated
 (NYSE:   LZB; PCX) today provided details on the restructuring of its
 manufacturing facilities which had been previously announced on April 19.
     La-Z-Boy will close the Marion, Virginia, plant of its Lea Industries
 division and the Selma, Alabama Pilliod facility.  The closure of these two
 plants will allow the company to consolidate the production into other company
 facilities without interrupting the supply of product to customers.
     La-Z-Boy will also eliminate the manufacturing of La-Z-Boy Contract
 furniture at its Lincolnton, North Carolina facility and will outsource some
 contract product lines in order to focus on the company's core strength in
 office and commercial seating products.
     As a result of these decisions, approximately 310 jobs will be eliminated
 over the next six months as these actions are phased in.  As announced last
 week, the company will take a charge of $0.11 per diluted share for these
 restructuring efforts.
     La-Z-Boy Incorporated President and Chief Operating Officer Jerry Kiser
 said, "These actions will allow us to rationalize our production capacity and
 achieve more efficient utilization.  Our Contract furniture division is re-
 focusing its manufacturing and marketing strategy and placing greater emphasis
 on its historical strength in office and commercial seating.  At the same
 time, the Contract division is announcing a new partnership for the
 manufacture and service of its RJ Plus line of modular casegoods products, and
 will also continue manufacturing its Myriad Collection of small and home
 office casegoods."  Additionally, he stated, "The Lincolnton facility will
 continue to manufacture a broad range of upholstered furniture for the
 company's La-Z-Boy Residential division.  These changes will significantly
 benefit La-Z-Boy's long-term profitability."
 
     La-Z-Boy Background Information
     With annual sales in excess of $2 billion, La-Z-Boy Incorporated is one of
 the world's largest residential furniture producers, employing more than
 20,000 people company wide and operating 55 manufacturing facilities in ten
 states and four foreign countries.  The La-Z-Boy Incorporated family of
 companies -- Alexvale, American Drew, Bauhaus, Centurion, Clayton Marcus,
 England, Hammary, HickoryMark, Kincaid, La-Z-Boy, La-Z-Boy Contract Furniture
 Group, Lea, Pennsylvania House, Pilliod and Sam Moore -- produces furniture
 for every room of the home and office.  And, under the American of
 Martinsville brand name, La-Z-Boy is also a leading manufacturer of contract
 room furniture for the hospitality and assisted-living markets.
     La-Z-Boy Incorporated's vast distribution network of proprietary
 retailers, which includes 290 La-Z-Boy Furniture Galleries(R) and 319 La-Z-Boy
 In-Store Gallerys, in-store gallery programs at Kincaid, Pennsylvania House
 and Clayton Marcus, England's Custom Comfort Centers and Lea's Kid's
 Generation displays, contains over 9 million square feet of retail floor space
 dedicated exclusively to selling La-Z-Boy products.  According to industry
 trade publication Furniture/Today, the La-Z-Boy Furniture Galleries retail
 network by itself represents the industry's sixth largest U.S. furniture
 retailer.  La-Z-Boy's stock is traded on the New York and Pacific stock
 exchanges under the trading symbol: LZB.  Additional information on the
 company is available at www.la-z-boy.com .
 
     Forward-looking Information
     Any forward-looking statements contained in this report represent
 management's current expectations, based on present information and current
 assumptions.  Actual results could differ materially from those anticipated or
 projected due to a number of factors.  These factors include, but are not
 limited to, anticipated sales growth, success of new products, interest rate
 fluctuations, changes in consumer confidence or demand and other risks and
 factors identified from time to time in the company's reports filed with the
 Securities and Exchange Commission.  The company undertakes no obligation to
 update or revise any forward-looking statements, either to reflect new
 developments, or for any other reason.
 
     Additional Information
     This news release is just one part of La-Z-Boy's financial disclosures and
 should be read in conjunction with other information filed with the Securities
 and Exchange Commission, including the company's most recent Form 10-Q report.
 That Form 10-Q, containing the latest quarter's income statement, balance
 sheet, cash flow statement, segment information and additional management
 discussion and analysis of the financial results, is available at
 www.la-z-boy.com .
 
 

SOURCE La-Z-Boy Incorporated
    MONROE, Mich., April 25 /PRNewswire/ -- La-Z-Boy Incorporated
 (NYSE:   LZB; PCX) today provided details on the restructuring of its
 manufacturing facilities which had been previously announced on April 19.
     La-Z-Boy will close the Marion, Virginia, plant of its Lea Industries
 division and the Selma, Alabama Pilliod facility.  The closure of these two
 plants will allow the company to consolidate the production into other company
 facilities without interrupting the supply of product to customers.
     La-Z-Boy will also eliminate the manufacturing of La-Z-Boy Contract
 furniture at its Lincolnton, North Carolina facility and will outsource some
 contract product lines in order to focus on the company's core strength in
 office and commercial seating products.
     As a result of these decisions, approximately 310 jobs will be eliminated
 over the next six months as these actions are phased in.  As announced last
 week, the company will take a charge of $0.11 per diluted share for these
 restructuring efforts.
     La-Z-Boy Incorporated President and Chief Operating Officer Jerry Kiser
 said, "These actions will allow us to rationalize our production capacity and
 achieve more efficient utilization.  Our Contract furniture division is re-
 focusing its manufacturing and marketing strategy and placing greater emphasis
 on its historical strength in office and commercial seating.  At the same
 time, the Contract division is announcing a new partnership for the
 manufacture and service of its RJ Plus line of modular casegoods products, and
 will also continue manufacturing its Myriad Collection of small and home
 office casegoods."  Additionally, he stated, "The Lincolnton facility will
 continue to manufacture a broad range of upholstered furniture for the
 company's La-Z-Boy Residential division.  These changes will significantly
 benefit La-Z-Boy's long-term profitability."
 
     La-Z-Boy Background Information
     With annual sales in excess of $2 billion, La-Z-Boy Incorporated is one of
 the world's largest residential furniture producers, employing more than
 20,000 people company wide and operating 55 manufacturing facilities in ten
 states and four foreign countries.  The La-Z-Boy Incorporated family of
 companies -- Alexvale, American Drew, Bauhaus, Centurion, Clayton Marcus,
 England, Hammary, HickoryMark, Kincaid, La-Z-Boy, La-Z-Boy Contract Furniture
 Group, Lea, Pennsylvania House, Pilliod and Sam Moore -- produces furniture
 for every room of the home and office.  And, under the American of
 Martinsville brand name, La-Z-Boy is also a leading manufacturer of contract
 room furniture for the hospitality and assisted-living markets.
     La-Z-Boy Incorporated's vast distribution network of proprietary
 retailers, which includes 290 La-Z-Boy Furniture Galleries(R) and 319 La-Z-Boy
 In-Store Gallerys, in-store gallery programs at Kincaid, Pennsylvania House
 and Clayton Marcus, England's Custom Comfort Centers and Lea's Kid's
 Generation displays, contains over 9 million square feet of retail floor space
 dedicated exclusively to selling La-Z-Boy products.  According to industry
 trade publication Furniture/Today, the La-Z-Boy Furniture Galleries retail
 network by itself represents the industry's sixth largest U.S. furniture
 retailer.  La-Z-Boy's stock is traded on the New York and Pacific stock
 exchanges under the trading symbol: LZB.  Additional information on the
 company is available at www.la-z-boy.com .
 
     Forward-looking Information
     Any forward-looking statements contained in this report represent
 management's current expectations, based on present information and current
 assumptions.  Actual results could differ materially from those anticipated or
 projected due to a number of factors.  These factors include, but are not
 limited to, anticipated sales growth, success of new products, interest rate
 fluctuations, changes in consumer confidence or demand and other risks and
 factors identified from time to time in the company's reports filed with the
 Securities and Exchange Commission.  The company undertakes no obligation to
 update or revise any forward-looking statements, either to reflect new
 developments, or for any other reason.
 
     Additional Information
     This news release is just one part of La-Z-Boy's financial disclosures and
 should be read in conjunction with other information filed with the Securities
 and Exchange Commission, including the company's most recent Form 10-Q report.
 That Form 10-Q, containing the latest quarter's income statement, balance
 sheet, cash flow statement, segment information and additional management
 discussion and analysis of the financial results, is available at
 www.la-z-boy.com .
 
 SOURCE  La-Z-Boy Incorporated