lesco

Discussion in 'Lawn Mowing' started by Racer88, Mar 1, 2005.

  1. Racer88

    Racer88 LawnSite Member
    Posts: 5

    There is a rumor going around tonight that LESCO sold there fertilizer plants to Scotts, Anybody hear this too or is the rumor mill hard at work?
     
  2. Mo Green

    Mo Green LawnSite Bronze Member
    Posts: 1,487

    News to me.
     
  3. Grass Gator

    Grass Gator LawnSite Member
    Posts: 122

    I think it's a rumor. They did change suppliers (and incurred significant charges for breaking that contract) but I don't believe intentions were to sell off.

    From their latest earnings release:

    In December 2004, LESCO announced that it would record estimated charges associated with its termination of an unfavorable contract with a methylene urea fertilizer supplier, pending a judicial determination of LESCO's liability. In addition to the $0.8 million inventory markdown noted above, the Company incurred charges during the fourth quarter of 2004 of $4.4 million, which included $2.2 million of costs related to discontinuation of the contract, $1.3 million for forgiveness of a note receivable, and approximately $0.9 million of miscellaneous costs. The Company has since secured an alternative, lower-cost source of methylene urea fertilizer and anticipates annual, pre-tax savings of over $2 million.
     

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