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EXHIBIT 99.2
FOR IMMEDIATE RELEASE CONTACT: JOHN L. PUGH
NOVEMBER 8, 2000 (770) 438-9595
DORSEY BEGINS RESTRUCTURING AND
ANNOUNCES MANAGEMENT CHANGES
Dorsey announces the initial phase of its restructuring plan after engaging a
crisis management and turnaround firm, The Recovery Group from Boston, MA.
John L. Pugh, Dorsey's Chief Executive Officer, providing some of the details of
the initial restructuring reported, "The Recovery Group and management have
spent an intense two weeks reviewing Dorsey's status. We have concluded that
staffing cuts in management, salaried employees and administrative employees
will be implemented immediately. These staffing cuts will affect approximately
50% of this employee grouping."
Pugh cautioned, "This is not the complete and final restructuring plan, which is
still under development; however, we feel we must take this action now to reduce
general administrative expenses to the bare minimum in order for the final
restructuring plan to succeed. We do anticipate reductions in the hourly work
force, as well as renegotiating the union contract; however, the backlog and
production levels in the manufacturing plants will dictate the number of hourly
workers affected."
Pugh continued by stating, "The implementation of any restructuring plan is
painful, and this one will be no exception. I feel very strongly that the pain
should be felt at the top first. The Atlanta corporate office will become
primarily a national sales office with limited administrative and finance
functions. All other corporate functions will be handled from our manufacturing
plants."
Senior management changes were announced by Pugh, "Ms. Lorri Palko, our
President and COO since 1997, tendered her resignation earlier in the year but
has graciously stayed on to oversee the production of a major contract. This
major contract is coming to a successful end this month, so Ms. Palko will be
leaving this month. In addition, our CFO, Mr. Allen Cain, will be leaving the
Company this month. The duties of Ms. Palko and Mr. Cain will be assumed by Mr.
Keith Lonergan, VP-Manufacturing; Ms. Allyson Turnbull, Corporate Controller;
Ms. Laura Roan, VP-Sales; as well as myself."
Dorsey Trailers, Inc. designs, manufacturers, and markets one of the broadest
lines of high quality, customized truck trailers through three plants located in
Alabama, Georgia and South Carolina.
Certain statements in this press release and statements by the Company in
reports to its stockholders and public filings, as well as, oral public
statements by Company representatives may be deemed to be forward-looking
statements, as defined by the Private Securities Litigation Reform Act of 1995.
Any forward-looking statements included herein have been included based upon
facts available to management as of the date of the statement. Any forward
looking statements are, however, inherently subject to the uncertainty of future
events, whether economic, competitive or otherwise, many of which are beyond the
control of the Company, or which may involve determinations which may be
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NOVEMBER 8, 2000
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described in such forward-looking statements will occur and actual events or
results may vary materially from those included herein.
Without limitation, the following are some of the factors which may affect
whether the events or results described in such forward-looking statements will
occur: increased competition, dependence on key management, continued
availability of credit from vendors, continued advancement of funds from lender,
reliance on certain customers, shortages of raw materials, component prices,
labor shortages or work stoppage, dependence on current industry trends and
demand for product, manufacturing interruption due to unfavorable natural
events, unfavorable results of outstanding litigation, government regulations
and new technologies or products. Readers should review and consider the various
disclosures made by the Company in this press release and in its reports to
stockholders and periodic reports on Form 10-K and 10-Q.
