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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 (DATE OF EARLIEST EVENT REPORTED) March 24, 1998
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UNISOURCE WORLDWIDE, INC.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE File No. 1-14482 13-5369500
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(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
P.O. Box 3000-0935, Berwyn, Pennsylvania 19312
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(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (610) 296-4470
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Not Applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
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On March 24, 1998, the Registrant issued the attached press release.
Item 7. Financial Statements and Exhibits.
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(c) Exhibits.
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(99) Press Release dated March 24, 1998.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
UNISOURCE WORLDWIDE, INC.
(Registrant)
By: /s/ Thomas A. Decker
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Thomas A. Decker
Senior Vice President,
General Counsel and Secretary
Dated: March 24, 1998
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Exhibit Index
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(99) Press Release dated March 24, 1998.
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EXHIBIT (99)
PRESS RELEASE DATED MARCH 24, 1998
NEWS RELEASE
Contact
Martha A. Buckley JoAnn P. Huston
Director, Corporate Communications Manager, Investor Relations
610-722-3511 610-722-3513
UNISOURCE TO EXPAND SCOPE OF STREAMLINING
COMPANY EXPECTS EARNINGS BELOW CONSENSUS ESTIMATES
BERWYN, PENNSYLVANIA -- MARCH 24, 1998 -- Unisource Worldwide, Inc.
(NYSE:UWW) announced today it has substantially completed the initial phase of
its streamlining analysis. Based on its findings, the company has now
significantly expanded the scope of the project and has engaged Coopers &
Lybrand Consulting to assist in designing its new organizational structure. The
analysis is expected to be completed by June 30 and the plan substantially
implemented by the end of the calendar year.
"The analysis of our underperforming and overlapping locations is nearly
complete," commented Ray B. Mundt, chairman and chief executive officer of
Unisource. "At this point, it seems likely that we will expand the number of
facilities to be impacted to seventy or more. More importantly, however, the
work we have done to date has highlighted opportunities for far more fundamental
change in our organization than originally addressed. As a result, we are
expanding our scope to examine every business process, including purchasing,
sales, marketing, customer service, logistics and administrative services. Our
goal is to establish a profitable core of business and grow from that base."
On January 21, 1998, Unisource announced its intention to improve its
returns to shareholders by streamlining the organization. The steps outlined
included closing or consolidating underperforming and overlapping locations,
moving away from its regional organizational structure and implementing more
-more-
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consistent business practices across the company. At the time, the company said
the moves would impact as many as 50 locations and that it would take a charge
in the range of $55 million to $70 million in the second fiscal quarter, which
ends March 31.
"Coopers & Lybrand Consulting has been effective in driving profound and
successful change at other organizations," Mundt said, "and we believe their
assistance will ensure the optimum organizational and cost structure to support
profitable growth." Coopers has said that it will take approximately twelve
weeks to complete its assessment and develop recommendations. Mundt indicated
that the company will implement a new organizational structure and common
business practices after Coopers has completed its study. The company now
expects to adopt its plan and record the special charge to earnings in the
second half of fiscal 1998; the charge may be greater than previously announced.
Mundt reiterated that this is a transition year for Unisource and that,
under the circumstances, it is difficult for the company to provide detailed
earnings guidance. He did state, however, that the company's results to date
indicate that its performance for the quarter and for the year will be
substantially below consensus estimates.
"Because we are extremely confident of the company's long-term prospects
for profitable growth following our restructuring, we remain totally committed
to our dividend," Mundt said. "The changes we are making will allow Unisource to
provide cost-effective service to our customers, along with consistent growth
and increased value for our shareholders in the years ahead."
Unisource Worldwide, Inc. (http://www.unisourcelink.com), headquartered in
Berwyn, Pennsylvania, is the largest marketer and distributor of paper products
and supply systems in North America, with revenues in excess of $7 billion.
This press release contains certain forward-looking statements which
involve known and unknown risks, uncertainties or other factors not under the
company's control which may cause the actual results, performance or
achievements of the company to be materially different from the results,
performance or other expectations implied by these forward-looking statements.
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