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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 AND EXCHANGE ACT OF 1934
Date of Report: January 6, 1999
BALDWIN PIANO & ORGAN COMPANY
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 0-14903 31-1091812
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
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4680 Parkway Drive, Mason, Ohio 45040-5301
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (513) 754-4500
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Item 5. Other Events
On January 6, 1999, Baldwin Piano & Organ Company (the "Company")
announced it would stop assembling grand pianos in its Conway, Arkansas plant
and consolidate all of its piano assembly operations in its Trumann, Arkansas
plant. The consolidation does not affect the 65 employees in the Company's new
high-gloss polyester finishing operation in the Conway plant, and does not
affect the operations of the Company's other piano plants in Greenwood,
Mississippi and Juarez, Mexico.
The Company expects the consolidation to be completed by mid-1999. When
completed, employment is expected to be reduced by approximately 180 positions
at the Conway plant, and increased by approximately 85 positions at the Trumann
plant. Consistent with its long standing policy, the Company will provide
re-employment assistance to displaced employees. The Company expects to incur
one-time pre-tax expenses of approximately $1.5 million during 1999.
Additionally, fixed asset expenditures related to the consolidation are expected
to approximate $0.5 million.
The Company estimates its annual pre-tax profits to improve by nearly
$2 million as a result of the consolidation. This improvement is expected
to result from the net reduction of employment and lower levels of inventory.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release dated January 6, 1999
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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.
BALDWIN PIANO & ORGAN COMPANY
(Registrant)
Date: January 7, 1999 By:/s/ Duane D. Kimble
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Duane D. Kimble
Chief Financial Officer
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EXHIBIT 99.1
CONTACTS: Duane Kimble Ken DiPaola or Joel Pomerantz
Baldwin Piano & Organ Company The Dilenschneider Group, Inc.
(513) 754-4647 (212) 922-0900
BALDWIN PIANO WILL CONSOLIDATE ALL
GRAND PIANO ASSEMBLY AT ITS TRUMANN, ARKANSAS PLAN;
POLYESTER FINISHING WILL REMAIN AT CONWAY FACILITY
BALDWIN EXPECTS ANNUAL PRE-TAX SAVINGS OF NEARLY $2 MILLION
MASON, OHIO, January 6, 1999-- Baldwin Piano & Organ Company
(NASDAQ:BPAO) today announced it would stop assembling grand pianos at the
company's Conway, Arkansas plant and consolidate all Baldwin piano assembly
operations at its Trumann plan in northeastern Arkansas. The company expects the
move to be completed by mid 1999.
Personnel reductions and lower inventories resulting from the
relocation are expected to generate annual pre-tax savings approaching $2
million. In connection with the move, the Company expects to incur one-time
pre-tax expenses of approximately $1.5 million and capital expenditures of
approximately $0.5 million in 1999.
The relocation, which will reduce employment at Conway by approximately
180 jobs, is expected to add approximately 85 positions at Trumann. Workers
affected by the move will be notified in coming months. Baldwin's new high-gloss
polyester finishing operation in Conway, which employs about 65 workers, is not
affected by this move nor are Baldwin's other piano operations in Greenwood,
Mississippi and Juarez, Mexico.
Commenting on the consolidation, Karen Hendricks, Baldwin's president,
chairman and chief executive officer, said: "Synchronous manufacturing has been
the cornerstone of our operations strategy. The move to our under-utilized
Trumann facility marks the next stage in our two year-old effort to implement
this highly effective program. To date, synchronous manufacturing has achieved
dramatic reductions in both floor space and production cycle times at Trumann.
It has delivered not only lower costs and improved efficiency, but also higher
quality pianos. All of these factors are critical to the company's future
profitability and market share growth.
"Consistent with Baldwin's long-standing policy, we will devote
substantial resources to helping displaced workers at Conway find new
employment. To make the transition to alternate employment as smooth as
possible, we will be preparing outplacement packages for all those affected and
will provide re-employment assistance, including contacting other businesses in
the Conway area."
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Returning to the subject of product quality, Ms. Hendricks noted that
Baldwin has, in fact, been manufacturing its top-of-the-line "Artist Grand"
pianos in Trumann, in parallel assembly with Conway, for over a year now.
"Quality at Trumann is absolutely consistent with Conway," she said. "With all
of our top engineers and technicians in Trumann, we are confident quality will
improve even more in the months and years ahead."
Baldwin Piano & Organ Company has marketed keyboard musical products
for over 137 years and has been providing consumer financing for the keyboard
industry for nearly a century. Baldwin, maker of America's best selling pianos,
also manufactures electronic and electro-mechanical components for Original
Equipment Manufacturers.
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"SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995:" This release contains forward looking statements that are subject to
risks and uncertainties, including, but not limited to, the impact of
competitive products and pricing, product demand and market acceptance, reliance
on key strategic alliances, fluctuations in operating results and other risks
detailed from time to time in the company's filings with the Securities and
Exchange Commission.
