Message #5 From:
Stock News Bot Date: January 11, 2007 04:00:00 AM
CETH News Convergence Ethanol Inc. Announces Profit Improvement Initiative
LOS ANGELES--(BUSINESS WIRE)--Convergence Ethanol, Inc. (OTCBB:CETH),
a biorenewable energy project developer and provider of engineered
products and systems to the energy industry, announced today a profit
improvement initiative.
The initiative is intended to improve financial performance, efficiency
and productivity, as well as to realign the company’s
professional skills with its profit opportunities. Its points include:
administrative workforce reduction, phase out of low-margin products,
tighter control of travel costs and a decrease in external costs across
the company.
The initiative is targeted to deliver over $1.2 million in future
annualized savings, for a one-time $0.2 million related pre-tax charge.
Based on current business activity, the company expects an overall
annualized profit increase of more than $2 million when these savings
are combined with the company’s strong sales
growth.
“We are committed to increasing our rate of
return on invested capital and to delivering stronger bottom-line
performance,” said Dr. James A. Latty,
president and chief executive officer, Convergence Ethanol. “Senior
management is focused on ensuring that our cost structure is both
competitive and in alignment with our strategic market opportunities,
such as developing our woodwaste-to-ethanol refinery in Ontario, Canada.”
All workforce reductions were made in non-revenue-generating areas, with
the greatest number in corporate headquarters' administrative jobs and
non-legal outside consulting. The company has not reduced sales,
marketing, engineering, manufacturing, finance or audit capabilities.
Latty explained, “We plan to have a greater
percentage of the company developing and selling Convergence Ethanol
projects, products and services. Our customers and partners will
continue to receive world-class products and support.”
Richard W. York, chief financial officer, added, “These
measures will improve business unit performance and optimize our
investments in project development, manufacturing, sales and marketing.”
California-based Convergence Ethanol is a biorenewable energy project
developer and an ISO 9001:2000-certified provider of engineered products
and systems to the energy industry. The company’s
mission is to support the energy industry’s
production of cleaner burning fuels.
For more information visit the company's developing website at www.c-eth.com
Safe Harbor Disclosure
This press release contains certain forward-looking statements, within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934, that involve a number of risks
and uncertainties. Actual events or results may differ from the
company's expectations. In addition to the matters described in this
press release, risk factors listed from time to time in the reports and
filings with the U.S. Securities and Exchange Commission may affect the
results achieved by the Company.
