Gibraltar Industries closes plant in Mississippi

Gibraltar Industries Inc. on December 16 announced the closing of its Enterprise, Miss., facility and the consolidation of its manufacturing operations into two other existing facilities, with no anticipated impact on sales. This consolidation is part of Gibraltar’s ongoing effort to streamline operations, reduce costs and improve long-term operating efficiencies. Since the beginning of 2007, Gibraltar has streamlined its operations with 24 facility consolidations and the reduction of staffing levels by nearly 20 percent.

The company also said that while its October financial results were on target, business conditions deteriorated unexpectedly and precipitously in November and remain highly volatile and uncertain. Consequently, Gibraltar does not expect to meet its 2008 EPS guidance issued on November 5. However, the company believes it is still on track to deliver a 20 to 30 percent increase in 2008 earnings per share from continuing operations compared to 2007, excluding any fourth-quarter 2008 special charges.

“Business conditions have deteriorated sharply in the last month. Due to the very tight credit market, many of our commercial building and industrial customers, both domestic and international, have delayed their projects as they look for financing alternatives. In addition, the turmoil in the automotive sector has negatively impacted their manufacturing schedules in the fourth quarter. The residential housing market remains suppressed, with some positive signs in the rebuild/repair market. As a result, our margins have been compressed, due to lower unit volumes and the FIFO effect on margins in some of our product lines, as material cost and product pricing decline,” said Henning N. Kornbrekke, president and chief operating officer.

“We remain focused on our business model of being the low-cost producer on a global basis. We will continue to consolidate operations, reduce costs, improve cash flow, and pay down debt. In 2008, we expect to reduce our debt by more than $100 million, bringing our debt-to-capitalization ratio below 40 percent. We are confident that our products and the markets we participate in will continue to provide excellent growth opportunities,” said Brian J. Lipke, chairman and chief executive officer.

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 3,400 employees and operates 64 facilities in 25 states, Canada, England, Germany and Poland.