Methode Electronics closing two plants; takes merger charges

Methode Electronics Inc. recently reported that it intends to take an after-tax charge of up to $0.12 per share during its remaining 2004 fiscal year. This charge will include approximately $1.8 million for costs associated with Methode’s recently completed merger to eliminate its Class B stock and the unsolicited tender offer for its Class B stock, and up to $2.5 million needed to close two European manufacturing facilities. Methode manufactures electronic component and subsystems devices.

Donald Duda, Methode’s president, says, “The continued price erosion in the copper and fiber-optic cable assembly business, as well as sales lost to lower- cost Eastern European and Asian suppliers, have rendered Methode’s manufacturing facility in Ireland and one of its manufacturing facilities in the UK unsustainable. It is for these reasons that we are closing these operations.”

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