Business
American Woodmark Provides Update Related To COVID-19
WINCHESTER, Va., April 16, 2020 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) (the "Company"), a leading supplier of cabinetry to the new
About this update from American Woodmark Corporation
[{"type":"text","content":"WINCHESTER, Va., April 16, 2020 /PRNewswire/ -- American Woodmark Corporation (NASDAQ: AMWD) (the \"Company\"), a leading supplier of cabinetry to the new construction and remodeling industries, announced today that operations at its component plants in Mexico have been suspended through April 30, 2020. These plants manufacture important components used by certain of our US manufacturing plants largely for our home center and builder channel and to a lesser extent our independent dealer and distributor channel. The Company is seeking to get these orders lifted by having the plants identified as essential to operate by the Mexican government. Cabinet manufacturing was identified as essential to the critical infrastructure within the U.S. by the Cybersecurity and Infrastructure Security Agency. As a critical supplier to the Company's U.S. operations, we are working with the Mexican government to achieve a similar identification for our plants in Mexico. As a contingency, the Company is evaluating all options, including shifting some production to its other plants, but expects at least some delays to impact its supply chain, especially if the suspension is extended past April 30, 2020.\nAll other Company manufacturing plants remain open and operational. \"The safety and well-being of our teams has been our number one priority from day one,\" stated Cary Dunston, Chairman and CEO. \"Since early March we have aggressively and proactively worked to create an environment that is safe and mitigates the risk of exposure to the COVID-19 virus by meeting or exceeding the recommendations and guidelines provided by the U.S. Centers for Disease Control and Prevention (\"CDC\"), as well as local and state health departments. Our locations have enhanced cleaning processes, established health screening procedures, added remote working options where possible, modified work centers and material flows with established social distancing practices, and prohibited all non-critical visitors to any site.\"\nIncreasing Financial Flexibility\nAmerican Woodmark has taken proactive steps to further enhance our financial flexibility, liquidity and cash flow, including:\nA 50% reduction in the base salary of the CEO and 25% reduction in the base salary of senior vice-presidents effective April 27, 2020 through July 31, 2020 Deferring any earned fiscal year 20...