USA: Speizman Updates Progress On Strategic Initiatives
With the funding of its currency losses now behind it, Speizman Industries believes it is now positioned for growth and profitability, consistent with its long-term strategic plan.
"Our vision is to build on our current leadership position in the commercial machinery industry for the sock and laundry segments by providing the latest innovative product solutions and value-added services," Robert S. Speizman, chief executive officer of Speizman Industries, commented. "Capitalising on our dominant market position, we have taken important steps on each of the elements in our strategy which we believe will increase both revenues and profit margins and build value for our stockholders."
These steps include introducing new technology, creating alliances, growing its service revenues and improving operating efficiencies.
Speizman Industries believes that there will be a continual evolution in the US and Canadian industry as manufacturers focus on being less labor dependent in their operation. A key part of improving manufacturers' operations will consist of new technologies, such as the labour-saving closed toe machine, recently redesigned by Lonati of Brescia Italy and delivered to Speizman's showroom in January 2001.
Said Mr Speizman: "With our dominant market presence, we believe we are strategically positioned to supply the new generation closed toe machines over the next couple of years to the US and Canadian sock industry."
The company anticipates shipping approximately 80 to 120 new generation closed toe machines per month during its last fiscal quarter ending 30 June 2001.
Through its current relationship with Lonati, Speizman has obtained distribution rights for SRA's and Tecnopea's packaging equipment. In addition, its longstanding relationship with Pellerin Milnor of Kenner, Louisiana provides integrated solutions for sock manufacturers' bleaching and finishing processes.
From January 2001, the company also received exclusive distribution rights for SRA and Tecnopea equipment, as well as the Solis pick and place robot for men's socks. And strategic alliances have been entered into with Martint Equipment Company (for the Braun pocketed dye/extracting machines) and CIT Group Inc (corporate-wide finance program) to provide competitive advantages in Speizman's targeted markets.
Growth In Service And Parts
Speizman is building a steadier stream of revenue derived from its parts sales and services, both of which generate attractive margins. Recently, its laundry segment introduced fee-based preventative maintenance programs and instituted improved operational reporting to maximise the productivity and profitability of its technical service resources. Further growth opportunities are identified in its newer business lines .
Over the past three fiscal quarters, Speizman has proactively reduced personnel and focused on addressing its non-performing business lines to improve overall efficiencies and reduce costs. Accordingly, the company instituted critical operational changes, which included the closing of its manufacturing operation for Todd Motion Controls Inc that should result in approximately $2 million annual savings.
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