Business
Art’s Way Announces Intention To Discontinue Tools Business
ARMSTRONG, IA / ACCESSWIRE / June 7, 2023 / Art's Way Manufacturing Co., Inc. (Nasdaq:ARTW) ("the "Company"), a diversified, international manufacturer and
About this update from Art's-way Manufacturing Co., Inc.
[{"type":"text","content":"ARMSTRONG, IA / ACCESSWIRE / June 7, 2023 / Art's Way Manufacturing Co., Inc. (Nasdaq:ARTW) (\"the \"Company\"), a diversified, international manufacturer and distributor of equipment serving agricultural, research and steel cutting needs, announced today that it intends to discontinue the operations of its Tools segment in the third quarter of its 2023 fiscal year.Operations of the Tools segment are under Ohio Metal Working Products/Art's Way Inc. dba American Carbide Tool, a wholly owned subsidiary of the Company, and specializes in the manufacturing of standard single point brazed carbide tipped tools as well as PCD (polycrystalline diamond) and CBN (cubic boron nitride) inserts and OEM tools.The intended action is part of the Company's ongoing focus of efforts and resources on the business segments that have historically been more profitable and that are expected to present greater long-term stockholder returns. The Company plans to fulfill its current backlog commitments to customers and subsequently pursue an orderly sale of the assets associated with the Tools segment, including real estate, equipment and inventory. Proceeds from the liquidation of ACT assets will be used for the retirement of debt and to make operational improvements in the Agricultural Products segment. The Company anticipates incurring charges associated with this divestiture until the process is complete, likely in the fiscal year ending November 30, 2023. The union representative has been notified of the expected closure, which will affect approximately 15 employees.\"Our Tools segment has historically generated losses causing us to consider multiple options for the business,\" stated Art's Way Manufacturing CEO, David King. \"After careful consideration and testing the market for the feasibility of a sale of the business unit, the decision was ultimately made to discontinue that business in order to focus on our profitable operations to deliver additional stockholder value. We would like to thank the employees for their work in this business and regret that this decision impacts them negatively. This decision was difficult but is a necessary step in positioning our business for the long-term.\"Art's-Way Manufacturing Co., Inc.Art's Way Manufacturing is a small, publicly traded company that specializes in equipment manufacturing. For over 65 years, i...