ALPHARETTA, Ga., July 1 /PRNewswire-FirstCall/ -- Schweitzer-Mauduit
International, Inc. (NYSE: SWM) today announced changes to its Brazilian
operations including the exit of the coated papers business and a resulting
decrease of approximately 100 employees, or 16 percent of the current
workforce, both effective immediately. This announcement will result in
restructuring expenses totaling approximately $3.3 million comprised of
$1.8 million in fixed asset impairment charges and $1.5 million for cash
employee severance and other payments. The restructuring expenses are
expected to be recognized during the second and third quarters of 2008.
Wayne H. Deitrich, Chairman of the Board and Chief Executive Officer,
commented that, "Our Brazilian coated papers business has experienced
increased inflationary cost pressures that we have not been able to offset
with selling price increases. Due to the devaluation of the U.S. dollar
against the Brazilian real, lower cost imported coated papers have gained
an approximate 43 percent share of the local market. As a result of these
factors, we have decided to exit the coated papers business in Brazil and
to concentrate on our core tobacco-related fine papers business. We expect
that the combination of exiting the coated papers business in Brazil, in
addition to the previously announced plan to raise the selling prices of
tobacco-related fine papers throughout the North, Central and South
American markets, will restore a modest level of profitability in our
Brazilian business by early 2009. Although these actions are regrettable in
terms of the impact on our employees and the local community, they are
necessary to improve our business performance and long-term profitability."
Schweitzer-Mauduit International, Inc. is a diversified producer of
premium specialty papers and the world's largest supplier of fine papers to
the tobacco industry. It also manufactures specialty papers for other
applications. Schweitzer-Mauduit and its subsidiaries conduct business in
over 90 countries and employ 3,400 people worldwide, with operations in the
United States, France, Brazil, the Philippines, Indonesia, Canada and a
joint venture in China. For further information, please visit the Company's
Web site at http://www.schweitzer-mauduit.com .
Contact: Bill Foust Pete Thompson
770-569-4203 770-569-4277
SOURCE Schweitzer-Mauduit International, Inc.
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Related links:
http://www.schweitzer-mauduit.com
CONTACT:
Bill Foust, +1-770-569-4203, or Pete
Thompson, +1-770-569-4277, both of Schweitzer-Mauduit
International, Inc.
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