HOUSTON, April 28 /PRNewswire-FirstCall/ -- Universal Compression
Holdings, Inc. (NYSE: UCO) today announced the transfer of substantially all
fabrication activities currently based in Tulsa, Oklahoma to its existing
facility in Houston, Texas. Engineering, production and related support
functions will be consolidated with Houston-based staffs while the Tulsa
costing and estimating group will remain in Tulsa.
"We appreciate the valuable contribution made by the Tulsa group of
employees," said Stephen A. Snider, Universal Compression's President and
Chief Executive Officer. "We believe the consolidation of the engineering and
production functions will result in improved process controls and enhanced
product quality. Furthermore, we believe these actions will allow us to
realize greater efficiency and profitability, and will better position
Universal Compression for the future."
As a result of this consolidation, operations at the Company's Tulsa
facility will be suspended and total employment will decline by approximately
100 by May 31, 2003. The Company's engineered product sales group is not
affected by this consolidation. Total consolidation-related costs are
expected to be approximately $2 million ($1.2 million after-tax), incurred
over the six-month period ending September 30, 2003. These actions are
expected to generate savings of approximately $2 million ($1.2 million after-
tax) per year.
Universal Compression, headquartered in Houston, Texas, is a leading
natural gas compression services company, providing a full range of contract
compression, sales, operations, maintenance and fabrication services to the
domestic and international natural gas industry.
Statements about Universal's outlook and all other statements in this
release other than historical facts are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements rely on a number of assumptions concerning future
events and are subject to a number of uncertainties and factors, many of which
are outside Universal's control, which could cause actual results to differ
materially from such statements. While Universal believes that the
assumptions concerning future events are reasonable, it cautions that there
are inherent difficulties in predicting certain important factors that could
impact the future performance or results of its business. Among the important
factors that could cause actual results to differ materially from those
indicated by such forward-looking statements are the demand for Universal's
products and services, integration of acquisitions and worldwide economic and
political conditions. These and other risk factors are discussed in
Universal's filings with the Securities and Exchange Commission, copies of
which are available to the public. Universal expressly disclaims any
intention or obligation to revise or update any forward-looking statements
whether as a result of new information, future events, or otherwise.
SOURCE Universal Compression Holdings, Inc.