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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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):
September 8, 1998
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APPLIED EXTRUSION
TECHNOLOGIES, INC.
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(Exact name of registrant as specified in charter)
Delaware 0-19188 51-0295865
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
3 Centennial Drive, Peabody, MA 01960
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (978) 538-1500
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ITEM 5. OTHER EVENTS
This Current Report on Form 8-K is being filed for the purpose of filing
the Registrant's press release dated September 8, 1998 describing a major
restructuring of its Covington, Virginia manufacturing facility. The Press
release follows immediately below.
September 8, 1998, Tuesday
Applied Extrusion Technologies, Inc. Announces Restructuring of its Covington,
Virginia OPP Plant
BOSTON, MA,
September 8, 1998--Applied Extrusion Technologies, Inc. (NASDAQ NMS - AETC)
announced a major restructuring of its Covington, Virginia manufacturing
facility. The restructuring, which will be fully implemented over the next six
months, is expected to significantly enhance the profitability of the Company.
The plan includes the shutdown of two older, less efficient production lines,
relocation of certain operations to other locations, and the elimination of
approximately 200 full-time positions. In connection with the restructuring, the
Company currently estimates it will record a one-time charge in the fourth
fiscal quarter of approximately $ 20 million. "The Company has invested heavily
in new highly efficient production assets and new product development, and as a
result, is the lowest cost producer of a broad-line of OPP films," said Thomas
E. Williams, President and Chief Executive Officer. "An ongoing focus on cost
reduction is necessary, particularly in the face of the recent pricing pressures
in the OPP films industry. In addition, taking out less efficient capacity
represents an important step toward expanding our profit margins and improving
utilization levels in the industry. The Company will continue to manufacture
certain highly differentiated products, which are unique to the tubular
manufacturing process, in our Covington and Terre Haute, Indiana facilities. We
regret the impact that this restructuring will have on many valued employees,"
concluded Williams. Applied Extrusion Technologies, Inc. is a leading developer
and manufacturer of highly specialized plastic films used primarily in consumer
product labeling, flexible packaging and health care applications. Through its
technological innovations, AET is a leader in the North American oriented
polypropylene and apertured films markets, and with the acquisition of Royal
Dutch/Shell Group's film operations, will become a worldwide leader in the OPP
films industry. Except for the historical information contained herein, the
matters discussed in this report are forward-looking statements that involve
risks and uncertainties which could cause actual results to differ materially
from those in the forward-looking statements, including those risks related to
the timely development and acceptance of new products, fluctuations in raw
materials and other production costs, the loss of one or more significant
customers, the impact of competitive products and pricing, the timely completion
of capital projects, the success of the Company's efforts to access capital
markets on satisfactory terms, and to acquire, integrate, and operate new
businesses and to expand into new markets, as well as other risks detailed in
Exhibit 99 of the Company's Annual Report on Form 10-K for the fiscal year ended
September 30, 1997 and from time to time in the Company's other reports filed
with the Securities and Exchange Commission.
CONTACT: Applied Extrusion Technologies, Inc.
Anthony J. Allott
Vice President and
Chief Financial Officer
978/538-1516
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by the
undersigned hereunto duly authorized.
APPLIED EXTRUSION
TECHNOLOGIES, INC.
By: /s/ Anthony J. Allott
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Anthony J. Allott
Vice President, Chief Financial
Officer and Treasurer
Date: September 14, 1998
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