Neenah Foundry Co. reports it has completed its exploration process intended to determine whether to offer the company for sale or merger, and says it will not seek such a move.
Based in Neenah, WI, Neenah Foundry manufactures a range of iron castings and steel forgings.
Neenah directors unanimously voted to end the search for a buyer/partner, and focus instead implementing the company's business plan. That plan "recognizes a consolidating market and is intended to position the company for growth by expanding its revenues and further penetrating existing markets that are already being served," the company stated.
The business plan also calls for exploring strategic alternatives to reduce operating costs and expand capacity in selected markets. The board believes that Neenah can enhance shareholder value by executing its current strategy while considering "strategic opportunities that might arise based on evolving market conditions."
Neenah’s directors also serve as the board the foundry’s parent company, ACP Holding Co. The company reported net income for FY2005 of consolidated net income of $15.1 million, an increase of $11.8 million or 463.8% over the $3.3 million recorded in FY 2004.
Also for FY2005, Neenah lists consolidated net sales of $541.7 million, a 20.2% increase over FY2004 net sales of $450.9. Neenah attributes the extra revenue to stronger sales and the income from steel-scrap surcharges.