Standard Register Expects to Reduce Pension Contributions Through 2016 under New Legislation
11 Août 2014 - 5:58PM
Business Wire
Standard Register (NYSE: SR) today provided an update on pension
funding expectations for 2014 through 2016 based on provisions in
the Highway and Transportation Funding Act of 2014 signed into law
last week.
Under the Highway and Transportation Funding Act provisions,
Standard Register estimates funding obligations of approximately
$64 million for 2014 through 2016, a $33 million reduction from
prior expectations. The Company had previously expected pension
contributions for 2014 through 2016 to total $97 million.
2014
2015
2016
(Dollars in millions) Previously expected pension contributions $
42.2 $ 34.4 $ 20.6 Revised pension contribution expectations $ 36.0
$ 19.2 $ 8.7
Funding Reduction
$
6.2
$
15.2
$
11.9
The Highway and Transportation Funding Act allows Standard
Register to determine funding requirements for five years using a
corporate bond interest rate within 10 percent of the 25-year
average of corporate bond interest rates. The legislation
effectively stabilizes interest rates used to calculate required
funding contributions and minimizes the impact of current low
interest rate conditions.
“Interest rate stabilization is very positive for the Company,”
said Joseph. P. Morgan, Jr. “The new legislation allows us to
reduce our expected pension contributions in the near term and
invest more in our expanding portfolio of solutions. Standard
Register remains committed to fully funding our pension
liability.”
Safe Harbor Statement
This press release contains forward-looking statements covered
by the Private Securities Litigation Reform Act of 1995. Because
such statements deal with future events, they are subject to
various risks and uncertainties and actual results could differ
materially from the Company’s current expectations.
Factors that could cause the Company’s results to differ
materially from those expressed in forward-looking statements
include, without limitation, Internal Revenue Service (IRS) final
determination of the average rates for qualified pension plan
contributions and potential costs related to passage of the 2014
Highway Bill, our ability to successfully integrate the acquired
assets or achieve the expected synergies of the WorkflowOne
acquisition, future pension funding requirements and recognition of
actuarial gains and losses, access to capital for expanding in our
solutions, the pace at which digital technologies and electronic
health records (EHR) adoption erode the demand for certain products
and services, the success of our plans to deal with the threats and
opportunities brought by digital technology, results of cost
containment strategies and restructuring programs, our ability to
attract and retain key personnel, variation in demand and
acceptance of the Company’s products and services, frequency,
magnitude and timing of paper and other raw material price changes,
the timing of the completion and integration of acquisitions,
general business and economic conditions beyond the Company’s
control, and the consequences of competitive factors in the
marketplace, including the ability to attract and retain customers.
The Company undertakes no obligation to revise or update
forward-looking statements as a result of new information, since
these statements may no longer be accurate or timely. For more
information, see the Company’s most recent Form 10-K and other
filings with the Securities and Exchange Commission.
Standard RegisterInvestor and media contact:Carol Merry,
614-383-1624carol.merry@fahlgren.com
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