SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15d of the
Securities and Exchange Act of 1934
---------------------------
Date of Report (Date of earliest
event reported) January 27, 1998
WLR Foods, Inc.
(Exact name of registrant as specified in its charter)
Virginia 0-17060 54-1295923
(State of (Commission File (IRS Employer Iden-
Incorporation) Number) tification No.)
P.O. Box 7000 22815
Broadway, Virginia (Zip Code)
(Address of Principal executive offices)
(540) 896-7001
(Registrant's telephone number,
including area code)
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Item 5. Other Events
On January 27, 1998, WLR Foods, Inc. issued the following press
release.
FOR IMMEDIATE RELEASE
Investor Contact: Robert Ritter
Chief Financial Officer
540-896-7001
Media Contact: Gail Price, Director of
Corporate Communication
704-624-2171
540-896-0406
WLR FOODS ANNOUNCES MARSHVILLE PLANT CONVERSION
Broadway, Virginia, January 27, 1998. WLR Foods, Inc. (NASDAQ:WLRF)
today announced plans to convert its Marshville, North Carolina turkey
complex to chicken production by the late fall of 1998. By late
spring 1999, the Marshville plant is scheduled to process 650,000
chickens per week in a two-shift operation.
In making the announcement, WLR Foods President and Chief Executive
Officer James L. Keeler stated, "Our chicken and Cassco Ice operations
are doing well but we've experienced losses in turkey for almost two
years. While poor financial performance has been driven considerably
by high feed costs, industry-wide turkey over-supply combined with
poor demand has resulted in historic low prices for commodity turkey
products. This has been the principal factor in our performing below
market expectations and continues as the primary barrier to returning
our turkey business to profitability. By decreasing turkey
production, we can reduce our sales of non-profitable commodity
products while, at the same time, ensuring that we can meet the needs
of our foodservice and retail customers."
Equipment refitting and construction at the Marshville complex are
scheduled to be accomplished while turkey processing continues at the
plant. The plant will make its conversion providing on-the-job
training for new responsibilities with present complex employees.
Mr. Keeler added: "We chose to convert Marshville because our
operating costs are non-competitive due to low production volumes.
Even though we ve made considerable progress in our North Carolina
turkey growout operation, it would be some time before we would feel
comfortable with adding more turkey growers and more turkeys in that
geographical area. But just as important, this conversion will permit
us to increase chicken volume by 650,000 head per week at costs
considerably below those necessary to increase capacity at any of our
other four chicken complexes."
Mr. Keeler continued: "Before we begin the plant conversion, we will
need commitments from Marshville producers with approximately 75% of
our current turkey production to convert their facilities to chicken.
We currently anticipate that turkeys raised by those producers who
elect not to convert will be processed in our Virginia turkey plants
until our contracts with these producers expire which, for most, will
be in 2000."
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As remaining North Carolina-raised turkey flocks are transported north
after the fall conversion, the company will achieve more cost-
effective utilization of its two Virginia turkey processing plants.
The Monroe, North Carolina turkey further processing plant will
continue to operate as usual. Increased bird size in Virginia will
supply the turkey requirements of Wampler Foods further processing
plants in both Monroe and Franconia, Pennsylvania.
WLR Foods intends to invest approximately $11 million in modifications
to support this conversion. The conversion plans allow for a doubling
of production with the addition of a second production line when
market conditions permit.
WLR Foods is a fully integrated provider of high quality turkey and
chicken products primarily under the Wampler Foods(R) label and retail
ice under the Cassco(R) label. With annual sales of $1 billion, it is
nationally ranked as the seventh largest poultry processor by sales
volume and is an international leader in poultry exports. WLR Foods
has processing operations in Virginia, North Carolina, West Virginia,
and Pennsylvania, close to its major mid-Atlantic markets.
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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 thereunto duly authorized.
WLR Foods, Inc.
By:______/s/Robert T. Ritter______
Robert T. Ritter
Vice President, Secretary,
Treasurer and Chief Executive
Officer
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