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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 4, 1998
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CENTRAL SPRINKLER CORPORATION
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(Exact Name of Registrant Specified in Charter)
Pennsylvania 0-13940 23-2328106
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(State or Other (Commission File (I.R.S. Employer
Jurisdiction of Number) Identification No.)
Incorporation)
451 North Cannon Avenue
Lansdale, Pennsylvania 19446
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (215) 362-0700
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events.
As previously disclosed by the Registrant in its Annual Report on Form
10-K for the fiscal year ended October 31, 1997 (the "Form 10-K"), the U.S.
Consumer Product Safety Commission (the "Commission") has been investigating
problems regarding the Registrant's Omega sprinkler heads. The Registrant
disclosed in the Form 10-K that the staff of the Commission had advised the
Registrant that the staff would be recommending to the Commission that it take
administrative action against the Registrant. On March 4, 1998, the Commission
issued a press release advising the public that the staff of the Commission had
filed, on March 4, 1998, an administrative complaint against the Registrant and
one of its subsidiaries. On March 4, 1998, the Registrant issued a press release
in response to the Commission's action. The Registrant hereby incorporates by
reference the Commission's press release attached hereto as Exhibit 99.1 and the
Registrant's press release attached hereto as Exhibit 99.2, each made a part
hereof, into this Item 5.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Exhibit Number Description
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99.1 Press Release issued by U.S. Consumer Product Safety
Commission, dated March 4, 1998.
99.2 Press Release issued by Registrant, dated March 4, 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.
CENTRAL SPRINKLER CORPORATION
(Registrant)
By /s/ Albert T. Sabol
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Albert T. Sabol
Executive Vice President, Finance and
Chief Financial Officer
Dated: March 6, 1998
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NEWS from CPSC
U.S. Consumer Product Safety Commission
Office of Information and Public Affairs Washington, DC 20207
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FOR IMMEDIATE RELEASE CONTACT: Russ Rader
March 4, 1998 (301) 504-0580 Ext. 1166
Release # 98-075
CPSC Sues Central Sprinkler Over Defective Fire Sprinklers
WASHINGTON, D.C. - The U.S. Consumer Product Safety Commission (CPSC) announced
today that its staff has filed an administrative Complaint against Central
Sprinkler Corp., and its subsidiary Central Sprinkler Co., of Lansdale, Pa.,
alleging that Central's "Omega" series fire sprinklers present a substantial
product hazard. The Complaint seeks a nationwide recall of the approximately 10
million Omega fire sprinklers that Central has manufactured since 1982.
In its Complaint, the CPSC staff alleges that these sprinklers are defective and
are likely to fail in a fire situation. The sprinklers may not properly activate
in the event of a fire, thus exposing the public to bodily injury or death. CPSC
is aware of six fires in which Omega fire sprinklers reportedly failed to
operate. In one of these instances, the fire caused more than $3 million in
property damage.
The Commission staff filed the Complaint after discussions with the company and
its representatives failed to result in a voluntary recall and replacement plan
acceptable to CPSC. This type of legal action against a company is rare. This is
only the second time in 10 years that the CPSC staff has filed such a suit.
In seeking a recall of the Omega sprinklers, the Complaint calls for extensive
public notice of the hazard and remedy. Only Central's Omega series fire
sprinklers are involved, including, but not limited to, models referred to or
marked as follows: C1 (or C-1), C1A (or C-1A), C-1A PRO (or C1-A PRO), C1-A PRO
QR, C-1A PRO ID, EC-20, EC-20A, EC-20 AID, R-1, R-1A, R-1M, Flow Control (FC;
Flow Control-FC), M, Protector-M or M Protector (Upright, Pendent, Sidewall,
Sidewall EC), HEC-12, HEC-12 RES, HEC-12 EC, HEC-12 EC PRO, HEC-12 ID, HEC-12
PRO, HEC-12 PRO QR, HEC-20, HEC-20 ID, Prohibitor QR and AC. They are installed
in homes, schools, hospitals, dormitories, nursing homes, offices and other
buildings.
From a distance, consumers may be able to make a preliminary determination of
whether their homes or other buildings are equipped with Omega fire sprinklers.
On most models, consumers will be able to see one to three flat round metal
disks stacked above one another with a small space between each disk. Because it
is difficult to conclusively determine whether Omegas are installed, CPSC
strongly encourages consumers to contact their architect, builder, sprinkler
contractor, plumber, homeowners' association or property manager. Consumers
should not attempt to unscrew the sprinkler or shut down their sprinkler system
to determine if they have Omegas.
While the Commission staff pursues an acceptable recall and replacement plan,
consumers with Omega
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fire sprinklers should be sure to have at least one fully operational smoke
detector on every floor of their home, especially near bedrooms. The Commission
staff also recommends that consumers have a well-defined and rehearsed escape
plan and an alternate escape plan in the event of a fire. As always, consumers
should diligently practice fire safety to reduce the possibility that a fire
will occur. Consumers can obtain fire safety information by calling CPSC's
toll-free hotline at (800) 638-2772 or by visiting CPSC's web site at
www.cpsc.gov.
The Commission staff urges anyone who is aware of any instances in which an
Omega sprinkler has failed to activate when tested or in a fire, or who have
questions about this announcement, to call CPSC's toll-free hotline at (800)
638-2772.
[GRAPHIC OMITTED]
The U.S. Consumer Product Safety Commission protects the public from the
unreasonable risk of injury or death from 15,000 types of consumer products
under the agency's jurisdiction. To report a dangerous product or a
product-related injury and for information on CPSC's fax-on-demand service, call
CPSC's hotline at (800) 638-2772 or CPSC's teletypewriter at (800) 638-8270. To
order a press release through fax-on-demand, call (301) 504-0051 from the
handset of your fax machine and enter the release number. Consumers can obtain
this release and recall information via Internet gopher services at cpsc.gov or
report product hazards to [email protected].
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For Immediate Release Contact: Bess Bezirgan or Jamic Tolson
March 4, 1998 1-800-523-6512 ext. 193
STATEMENT BY CENTRAL SPRINKLER
IN RESPONSE TO U.S. CONSUMER PRODUCT SAFETY COMMISSION
Central Sprinkler strongly disagrees with the CPSC's conclusions about the
performance of the Omega sprinkler. The Omega works. It has been successfully
controlling fires for 15 years. We intend to defend our product and our ongoing
remediation program.
The Commission's conclusion is based on a methodology that does not apply to
installed sprinkler systems. According to National Fire Protection Association
and Underwriters Laboratories protocols for installed sprinkler systems,
evaluation of an installed sprinkler system is based on site-specific conditions
including:
* available water pressure;
* the number and type of sprinkler heads;
* the area covered; and
* the building layout and structure.
We have sold more than eight million Omega sprinkler heads during the past 15
years. In the five incidents in which an individual head may not have operated,
other heads in the system have activated to successully assist in controlling
the spread of fire.
Moreover, we strongly believe that the remediation program voluntarily initiated
by our company nearly two years ago addresses the Commission's concerns.
Since learning of concerns about activation in early 1996, we have spent more
than $5 million to examine more than 1,800 buildings and provide remedies as
appropriate. We've set up an 800 number for those who want our help. We've
notified contractors and other purchasers by mail. We are addressing this issus
every day and we are vigorously moving ahead with this program.
We are especially disappointed that our technical team has not been given the
opportunity to meet with the Commission's technical experts to discuss CPSC
data, its specific concerns, and its conclusions. Despite our repeated
requests, the Commission staff has not agreed to set up a meeting on these
matters.
Editors' Note:
Individuals with concerns or questions about Omega sprinklers should call
1-800-638-1531.
Central Sprinkler Company
451 North Cannon Avenue, Lansdale, Pennsylvania, 19446
(215) 362-0700 (800) 523-6512 FAX: (215) 362-5385
