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: March 17, 2000
(Date of earliest event reported)
UNIVERSAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Virginia 1-652 54-0414210
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
1501 North Hamilton Street
Richmond, Virginia 23230
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code:
(804) 359-9311
<PAGE>
Item 5. Other Events.
The press release issued by the Registrant on March 17, 2000
attached hereto as Exhibit 99 is incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
No. Description
--- -----------
99 Press release announcing Universal Leaf North America to
right-size operations.*
- -------------
*Filed Herewith
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
UNIVERSAL CORPORATION
(Registrant)
Date: March 20, 2000 By: /s/ George C. Freeman, III
--------------------------------------------
George C. Freeman, III
Assistant Secretary
<PAGE>
Exhibit Index
Exhibit
Number Document
- ------ --------
99 Press release announcing Universal Leaf North America
to right-size operations.*
- -------------
*Filed Herewith
CONTACT: RELEASE:
KAREN M. L. WHELAN IMMEDIATELY
(804) 359-9311
UNIVERSAL LEAF NORTH AMERICA TO RIGHT-SIZE OPERATIONS
RICHMOND, VA MARCH 17, 2000/PRNEWSWIRE/---- Universal Leaf North
America, a subsidiary of Universal Leaf Tobacco Company, Inc., today announced
that it would take a number of actions to rationalize and consolidate its U.S.
operations. These measures, which management considers essential, include the
permanent closure of the company's leaf processing operations in Rocky Mount,
North Carolina. This plant has not operated since September 1999 due to flooding
caused by Hurricane Floyd. In addition, the company will close the remainder of
its extruder facilities, which are located in Lexington, Kentucky; Bowling
Green, Kentucky; Lumberton, North Carolina; and Rocky Mount, North Carolina.
These plant closures will also result in the need to reduce the company's
workforce. Management expects that approximately 175 full-time and 1400 seasonal
positions will be eliminated; however many of the seasonal positions have not
been filled since September 1999 when the Rocky Mount flooding occurred.
Personnel costs associated with these closures are estimated at about
$7 million before taxes, and management expects to realize on-going cost savings
beginning in fiscal year 2001. Management also expects significantly smaller
U.S. flue-cured and burley crops in the coming year, which will affect
processing volumes.
R.E. Foy, Jr., President of Universal Leaf North America, noted, "Over
the past 18 months, our U.S. tobacco operation has been confronted with a number
of challenges. These include significant declines in U.S. flue-cured and burley
quotas, the Rocky Mount flooding, the far-reaching effects of the Master
Settlement Agreement on U.S. cigarette sales and leaf use, and unprecedented
political and legal attacks, all of which have combined to change the outlook
for tobacco production in the United States and to create a difficult operating
environment. As we noted over a year ago, we do not expect a near-term reversal
of this situation. We must take steps today to adapt to the new reality of the
tobacco industry in the United States. This will require difficult decisions and
extraordinary efforts from all of us."
Henry H. Harrell, Chairman of the Board and Chief Executive Officer
of Universal Leaf Tobacco Company, Inc., stated, "We deeply regret that the
existing environment in our industry has given us no choice but to implement
these actions in order to remain efficient and competitive in the U.S. market.
The decisions to make these changes have been difficult, but we are confident
that the actions we are announcing today will allow our company to successfully
meet the unique challenges that we foresee in the U.S. markets.
Fortunately for the overall company, the markets outside the United States
continue to enjoy good prospects."
Universal Leaf Tobacco Company, Inc. is a subsidiary of
Universal Corporation (NYSE-UVV), a diversified company with operations in
tobacco, lumber, and agri-products. Universal Corporation's gross revenues for
the fiscal year that ended on June 30, 1999, were approximately $4.0 billion.
For more information on Universal Corporation, visit its web site at
www.universalcorp.com.
# # #
