TRADING SYMBOL: Toronto Stock Exchange - HWD
LANGLEY, BC, Nov. 21, 2016 / CNW/ - Hardwoods Distribution Inc. ("Hardwoods" or the "Company") today announced that on November 18, 2016 a trade petition was filed in the United States with respect to imported hardwood plywood from China (the "Petition").
The action was filed by a group of U.S. manufacturers of hardwood and decorative plywood (the "Petitioners"). The Petition, filed with the U.S. Department of Commerce and the U.S. International Trade Commission, alleges that imports of Chinese manufactured hardwood plywood are sold in the United States at prices below cost, and are subsidized by the Government of China. The Petition claims that U.S. manufacturers of hardwood and decorative plywood have suffered material competitive injury and requests that the U.S. Government investigate whether antidumping and countervailing duties should be applied against the value of imported hardwood plywood originating from China.
This is the second trade case initiated by the Petitioners. The original trade case, which was filed on September 27, 2012, was dismissed on November 5, 2013 by the U.S. International Trade Commission ("ITC"). The Petitioners appealed the ITC's decision in the original trade case to the U.S. Court of International Trade, however that appeal was extinguished on September 19, 2016.
Hardwoods sells a wide range of architectural building products to customers in North America, including hardwood plywood products. Hardwoods strategy for the hardwood plywood product category includes selling both imported and domestically produced hardwood plywood, in order to satisfy the demand and diverse product preferences of its customers.
In the event that trade duties were levied against Chinese hardwood plywood, this would impact the market for hardwood plywood in the United States. These impacts could include significant changes to the selling prices, margins, and/or product supply availability of both imported and domestically manufactured hardwood plywood. However the Company estimates that after considering the recent acquisition of Rugby Architectural Building Products which was completed in July 2016, the proportion of its total sales falling within the scope of this trade case is less than 11% of annual revenues.
"We will closely monitor the situation and make adjustments to our product sourcing that arise as a result of developments in this new trade case," said Rob Brown, President and CEO of Hardwoods. "Our focus will continue to be on successfully meeting the ongoing product needs of our customers."
About Hardwoods Distribution Inc.
Hardwoods is North America's largest distributor of high-grade hardwood lumber, sheet goods, architectural millwork and non-structural architectural grade building products to the residential and commercial construction markets. The Company operates a North American network of 60 distribution centres, as well as one sawmill and kiln drying operation.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION
This news release includes forward-looking statements. These involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "estimate", "expect", "may", "plan", "will", and similar terms and phrases, including references to assumptions. Such statements may involve, but are not limited to: in the event that trade duties were levied against Chinese hardwood plywood, this would impact upon the market for hardwood plywood in the United States; these impacts could include significant changes to the selling prices, margins, and/or product supply availability of both imported and domestically manufactured hardwood plywood; and the Company estimates that including the acquisition of Rugby Architectural Building Products which was completed in July 2016, the proportion of its total sales falling within the scope of the US trade case against Chinese hardwood plywood is less than 11%.
These forward-looking statements reflect current expectations of management regarding future events and operating performance as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to: national and local business conditions; political or economic instability in local markets; competition; consumer preferences; spending patterns and demographic trends; legislation or governmental regulation; acquisition and integration risks.
Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, management cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements reflect management's current beliefs and are based on information currently available.
All forward-looking information in this news release is qualified in its entirety by this cautionary statement and, except as may be required by law, Hardwoods undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof.
SOURCE Hardwoods Distribution Inc.
For further information: Faiz Karmally, Chief Financial Officer, Phone: (604) 881-1982, Email: [email protected], Website: http://www.hardwoods-inc.com