In a message dated 96-02-14 03:12:49 EST, you write: >Just heard on the National ABC radio news that Kimball Piano is no more. No >details were given. > >Leaves a lot of questions unanswered, like Bosendorfer, etc. > > >Dave Stocker >firtree@aol.com >Tumwater, WA > > Here is the full text of Kimball's press release: KIMBALL TO DISCONTINUE DOMESTIC WHOLESALE PIANO SALES AND ASSEMBLY Jasper, IN (February 13, 1996) -- The Kimball International, Inc. board of directors today approved the company's intentions to cease domestic piano operations and formally align those capacities into the contract furniture and cabinets group. Kimball indicated that domestic piano sales and assembly will be gradually phased out in the coming months. Employee redeployment and dealership support will be at the forefront during the transition. All ongoing commitments will be honored as the company strives to maximize asset utilization and minimize go-forward contingencies. "Our Piano Group has done a commendable job in 'right sizing' themselves to parallel the dramatic decline in the domestic piano market over the last fifteen years," said John B. Habig, Senior Executive Vice President, Operations Officer, Kimball International, Inc. "Since the industry's peak in the late 1970's, our West Baden and French Lick, IN business units have continuously refocused their strategies to a variety of furniture related and contract electronics manufacturing capabilities, including piano cabinets themselves. We remain committed as a high value cabinet supplier to the piano market. As part of the realignment, the West Baden facility will be renamed Springs Valley Manufacturing." The company anticipates establishing a reserve for discontinuing the piano product line in the current fiscal year. A charge, expected to range between $ .09 and $ .11 per Class B share, will be recorded in March to cover the incremental costs related to exiting this product line. "This realignment is a direct result of the domestic piano market's evaporation to less than 25% of its peak volume levels," said Douglas A. Habig, President and Chief Executive Officer, Kimball International, Inc. "The Piano Group's evolvement into a viable contract supplier is a testament to their flexibility and willingness to redirect their core competencies. Realizing pianos have been a large part of our company's heritage, sensitivities to employees, community, customers and suppliers have complicated our shorter term 'fixes' over the past few years. This strategic repositioning will now allow us to eliminate the financial underperformance experienced in this division as they become better linked with our overall corporate business plan. It is consistent with our longer term pursuit of growing Share Owner return." Kimball International, Inc. is a diversified furniture and electronics manufacturer with fiscal year 1995 Sales of $900 million. Headquartered in Jasper, IN, the company's Class B common stock is traded on the NASDAQ National Market under the symbol KBALB. --end of Press Release-- Note: Kimball will continue to make piano cabinets for other piano manufacturers, as they have done for some time now. Also, Bosendorfer will not, to my knowledge, be affected at all by this. They are a separate division of Kimball International, Inc. Kimball will continue to honor the warranties on its pianos. Roger Weisensteiner said he will continue to handle warranty issues for Kimball. Larry Fine
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