Clarcor

In July of 2006 the Company announced a major three-year restructuring of the HVAC filter manufacturing operations within its Industrial/Environmental Filtration business segment. This restructuring is anticipated to cost approximately $22 million in capital investment and an additional $4 million of expense over three years and result in a $14 million annual increase in operating profits of the Company’s Industrial/Environmental Filtration business segment. The Company hopes to achieve these profit increases by more fully automating its HVAC filter production processes and more rationally locating its production facilities throughout the United States. By the end of fiscal year 2006, the restructuring efforts were largely on schedule and on budget, with the Company having placed orders for several million dollars of capital equipment, having successfully closed a production facility in Kenly, North Carolina and having executed a long term lease for a new facility in Pittston, Pennsylvania which will serve
customers located in the Northeastern United States.
 

Clarcor is in a three year program to automate and strategically locate manufacturing facilities with the goal of adding $ 14 million in operating profits to the HVAC segment.