11:33 AM EST - Dorel Industries Inc. : reports that it is suspending most of the manufacturing at its Ameriwood furniture plant in Dowagiac, Mich., affecting 170 of 215 employees there. "While we remain convinced that there will be sustained demand for domestically manufactured ready-to-assemble furniture, we have concluded that with the improvements made to date, our manufacturing footprint exceeds anticipated market needs," CEO Martin Schwartz said in a release Thursday. The suspension "will ensure the long-term viability of our domestic operations and speed Ameriwood's profitability growth," he said. "RTA furniture is a business we know well and will maintain. We are confident that, despite a difficult environment, we will definitely prevail." The suspension at Dowagiac will result in a pre-tax restructuring charge of about $11 million, most of which will be recorded this year. Of that amount, about $9 million will be a non-cash charge representing the writedown of building, equipment and other assets. In the annual outlook, organic revenue growth is expected to be modest, but earnings improvements will outpace revenue increases. On the home furnishings segment's other businesses, Dorel's president said that despite a slow first quarter at Cosco Home & Office, which markets folding furniture, step stools, ladders and home healthcare products, the balance of the year is expected to be better than 2006. Dorel Industries, Inc.
shares DII.B:CA are trading up seventeen cents at $35.47.
