News

Archive for April, 2001

AEP INDUSTRIES INC. ANNOUNCES SALE OF INTEREST IN HITACHI CHEMICAL FILTEC, INC.

Thursday, April 26th, 2001

CONTACT: Paul Feeney
EVP and CFO
AEP Industries
(201) 807-2330
e-mail: feeneyp@aepinc.com

FOR IMMEDIATE RELEASE

Announces Consolidation of Operations in Australia

SOUTH HACKENSACK, N.J., April 26, 2001 – AEP Industries Inc. (Nasdaq: AEPI, the “Company”) today reported that it entered into an agreement to sell its 50 percent interest in the Hitachi Chemical Filtec joint venture investment to its partner, Hitachi Chemical Company, Ltd., for approximately $10 million.

This investment has a carrying value of approximately $16 million; accordingly, sale of this investment will result in a non-cash loss of approximately $6 million.

“We acquired our interest in Hitachi Filtec in 1996 as part of our acquisition of Borden, Inc.’s global packaging business and are now selling it because this investment is no longer core to the Company’s long-term strategy,” stated Brendan Barba, Chairman and Chief Executive Officer of AEP. “The proceeds from this sale will be applied to the repayment of debt,” Barba added.

The Company also announced that it plans to shut down its Melbourne, Australia operations and consolidate those activities into the Company’s new Sydney location. AEP will take pre-tax restructuring charges, estimated to be $1.8 million over the next nine months, primarily associated with severances, relocation and lease close down costs of this facility. Approximately $1.3 million of this restructuring charge is expected to be cash and the remaining $500,000 will be non-cash charges.

“This action is another of the steps we are taking to improve the efficiency of our foreign operations,” Mr. Barba concluded.

AEP Industries Inc. manufactures, markets, and distributes an extensive range of plastic packaging products for the food/beverage, industrial and agricultural markets. The Company now has operations in 11 countries throughout North America, Europe and Asia/Pacific.

Except for historical information contained herein, statements in the release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks include, but are not limited to, risks associated with pricing, volume and conditions of markets. Those and other risks are described in the Company’s filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or may be obtained from the Company.