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):
December 9, 1997
Wyman-Gordon Company
(Exact name of Registrant as specified in its charter)
Massachusetts 0-3085 04-1992780
(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation) Number) Identification No.)
244 Worcester Street, Box 8001, No. Grafton, Massachusetts 01536-8001
(Address of principal executive offices and zip code)
508-839-4441
Registrant's telephone number, including area code
ITEM 5. OTHER EVENTS
Wyman-Gordon Company today announced that it has taken the 29,000 ton
press at its Houston, Texas facility out of service for several months to
repair structural cracking and, while the press is out of service, to install
upgrades and process changes on that press to improve reliability, cycle time
and throughput capacity. David P. Gruber, Chairman and CEO, commented: "We
believe that we have adequate replacement capacity to satisfy our customers'
needs, and our number one focus during the press downtime will be to work with
our customers to insure their requirements are met. We believe that servicing
the 29,000 ton press now will improve our ability to handle peak capacity.
Qualifying the production on our other presses will in the long run enhance
our capacity management flexibility and reduce the unpredictable downtime and
associated overtime and repair costs that we have experienced as we scramble
to meet our growing customer demands. We are committed to improving operating
margins through cost reductions and synchronous manufacturing programs."
The Company has recently reinstalled a 20,000 ton press at the Houston
facility and believes that by the end of December 1997 the 20,000 ton press
will have the capability of producing approximately 80% of the parts
previously produced on the 29,000 ton press. The Company believes it has the
capability of producing the remaining 20% of the parts on its 35,000 ton press
in Grafton, Massachusetts and its 30,000 ton press in Livingston, Scotland.
The transfer of production to the 20,000, 30,000 and 35,000 ton presses will
in most cases require customer approval. The Company has requested that
customers expedite their approval process. Once the transfers are complete,
the Company expects that it will have productive capacity sufficient to meet
customer requirements. The 29,000 ton press in Houston produced approximately
two-thirds of the Company's aeroturbine forgings during fiscal year 1997. The
cracks were discovered as a result of an ultrasonic inspection of the 29,000
ton press conducted as part of a preventive maintenance program. Current
estimates indicate that repairs may require two to six months depending on the
extent of the modifications.
Because of production delays and the cost of transferring production to
other presses, the Company expects that revenues and net profits for the third
and fourth quarters of fiscal year 1998 will be impacted. However, the
Company does not believe that the impact will be significant.
SIGNATURES
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.
Date: December 9, 1997 WYMAN-GORDON COMPANY
/s/ Wallace F. Whitney, Jr.
By: Wallace F. Whitney, Jr.
Vice President and
General Counsel
and Clerk
