Tecumseh to Recognize Impairment Charge
Tecumseh ProductsCompany today announced that it will recognize a charge in the fourth quarter of 2003 for the impairment of goodwill associated with its European compressor operations.
The charge, which was determined as part of its annual evaluation of goodwill as specified by Statement of Financial Accounting Standard No. 142, amounts to $29.5 million dollars before and after taxes ($1.60 per share). The impairment is the result of the 16% decline in the value of U.S. dollar versus the Euro. The change in currency value increases the Company's net investment in the European subsidiary in dollar terms and reduces margins on dollar denominated sales. After the impairment charge, the Company still has recorded $7.7 million in goodwill associated with the European compressor operations that could become further impaired if the U.S. dollar continues to weaken.
Tecumseh Products Company announced today it will broadcast its fourth quarter and year-end 2003 financial results conference call live over the Internet on Thursday, January 29, 2004 at 11:00 a.m. ET.
Those who wish to listen to this conference call should visit the Investor Relations section of the Company's web site at least 15 minutes prior to the event. Please follow the instructions provided to assure that the necessary audio applications are downloaded and installed. These programs can be obtained at no charge to the user.
Tecumseh Products Company (Nasdaq: TECUA, TECUB) is a full-line independent global manufacturer hermetic compressors for air conditioning and refrigeration products, gasoline engines and power train components for lawn and garden applications, submersible pumps, and small electric motors. Pump Products include small submersible pumps used in a wide variety of industrial, commercial and consumer applications and heavy duty centrifugal type pumps used in the industrial, agricultural, marine and transportation industries. The Company's strategy for growth in the segment is to increase sales and market share through continued product expansion and market penetration. Tecumseh products are sold in over 100 countries around the world.
Source: Tecumseh Products Company LLC