-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WWh6C8VERMgG7F2vA9kUmilNVvbQuW4TBKaZ/xLB03GRq1YAQhcq6ERZXbi6g+fr EGdu16OoBXV/buGFhhye5w== 0000003941-98-000013.txt : 19981015 0000003941-98-000013.hdr.sgml : 19981015 ACCESSION NUMBER: 0000003941-98-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981006 ITEM INFORMATION: FILED AS OF DATE: 19981006 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALLIED PRODUCTS CORP /DE/ CENTRAL INDEX KEY: 0000003941 STANDARD INDUSTRIAL CLASSIFICATION: 3523 IRS NUMBER: 380292230 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-05530 FILM NUMBER: 98721144 BUSINESS ADDRESS: STREET 1: 10 S RIVERSIDE PLZ STREET 2: SUITE 400 CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3124541020 8-K 1 CURRENT REPORT 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): September 24, 1998 ALLIED PRODUCTS CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 1-5530 38-0292230 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 10 South Riverside Plaza Chicago, Illinois 60606 (Address of principal executive offices) (Zip Code) (312) 454-1020 (Registrant's telephone number, including area code) Not applicable (Former name or former address, if changed since last report) Item 5. Other Events See Exhibit 20, a press release dated September 24, 1998, reporting that the Registrant would record a pretax charge of approximately $16 million in the third quarter of 1998. Item 7. Financial Statements and Exhibits (c). Exhibit 20 - Press release dated September 24, 1998. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant has duly caused the report to be signed on its behalf by the undersigned hereunto duly authorized. ALLIED PRODUCTS CORPORATION (Registrant) By: /s/Robert J. Fleck ----------------------------------------- Robert J. Fleck Vice President-Accounting, Chief Accounting and Administrative Officer October 6, 1998 EX-20 2 CURRENT REPORT Exhibit 20 ---------- Contact: Dan L. Drexler (312) 454-1020 ALLIED PRODUCTS TAKES THIRD QUARTER CHARGE DUE TO INCREASED COSTS AT VERSON ------------------------- CHICAGO, IL -- September 24, 1998 -- Allied Products Corporation [NYSE/ADP] announced that it will record a pretax charge of approximately $16 million in the third quarter. This charge stems primarily from revised cost estimates for several newly designed, automated, multi-station stamping presses currently in production at its Verson division. The need for the revised cost estimates were identified late in the third quarter and reflect the impact of production bottlenecks in the assembly process, as well as greater than anticipated increases in subcontracting costs. In addition to the current charge, the revised estimates are expected to result in lower margins at the Verson division, until the presses currently in production are completed. Third quarter results will be released on October 22, and as previously disclosed, will be lower than the corresponding 1997 period and current analysts' estimates. The Company, as part of the estimate revision process, has reviewed all work currently in progress, all committed press orders and all future business currently being quoted. Based on this review, Allied Products management is confident that the scope of the problem has been identified and that appropriate corrective actions are being implemented aggressively. Commenting on the situation, Richard A. Drexler, Chairman, President and Chief Executive Officer of Allied Products, stated: "Strong demand for Verson equipment has generated record bookings and backlog, and that in turn has placed severe pressures on our existing resources. Significant growth is often accompanied by equally significant challenges, and we will be proactive in addressing these issues." Last year, Allied Products embarked on a major expansion program for Verson's assembly area and an upgrading of its machine shop capabilities. The expansion adds substantial productive capacity to Verson's Chicago facility, including 117,800 square feet of new manufacturing area. Verson's additional physical capacity will be augmented by the implementation of a new "focused factory" press assembly process. This process involves the use of dedicated work cells, each with its own tooling and staff, for each major press component. Together they are expected to improve Verson's operations on future projects by reducing production cycle time and costs. These programs are expected to further enhance Verson's ability to compete globally in the growing market for large automated stamping equipment. The Company will continue to actively pursue these markets. Allied Products Corporation is a manufacturer of specialized machinery, primarily large metal- stamping presses, agricultural equipment and landscape and turf maintenance equipment. Through this core business, Allied Products provides technologically advanced, cost-effective solutions to the needs of a wide range of industrial and agricultural markets. This release is covered under the "Safe Harbor" provisions under the Private Securities Litigation Reform Act of 1995. Certain information covered in this release is not historical facts but consists of forward looking statements that involve a number of known and unknown risks and uncertainties, including but not limited to, competitive activities in the industries served, overall economic conditions, labor relations, capacity and supply constraints and other risks and uncertainties. The Company's outlook is based on assumptions relating to the factors discussed above. -----END PRIVACY-ENHANCED MESSAGE-----