Pacific Safety Products Inc.

Pacific Safety Products Inc.

November 03, 2009 06:00 ET

Pacific Safety Products Inc. Announces Workforce Adjustment

KANATA, ONTARIO--(Marketwire - Nov. 3, 2009) - Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or "the Company"), a leader in the field of protective body armour and soldier systems equipment, today announced a reduction in its workforce to align the Company's cost structure with revised revenue projections for fiscal year 2010.

Mr. David Scott, Chief Executive Officer commented, "In the media release of October 26, 2009, the Company announced that it was taking immediate action to address an expected decline in revenue through expense reductions. Today's announcement is the execution of that planned action. The Company has reduced its workforce by approximately 30 positions. The jobs are primarily in manufacturing and related support functions. Layoffs will occur in the Company's U.S. and Canadian facilities over the next week. The Company expects that this action will result in an annual reduction of $1.0M in operating costs."

About PSP

The mission statement of Pacific Safety Products Inc. is ...we bring everyday heroes home safely™PSP is an established industry leader in the production, distribution and sale of high-performance and high-quality safety products for the defence and security markets. These products include body armour to protect against ballistic, stab and fragmentation threats, ballistic blankets to reduce blast effects, and protective products against chemical and biological hazards. PSP is the largest armour manufacturer in Canada, directly supplying the Canadian Department of Defence, Federal Government Agencies and major Canadian law enforcement organizations. The Company also provides specialized law enforcement and safety products through APS Distributors, a division of PSP that services law enforcement and public safety agencies across the country. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armour products to U.S. based law enforcement and private security firms. The Company also produces tactical clothing and emergency medical kits. Pacific Safety Products is a reporting issuer in British Columbia, Alberta and Ontario, Canada and publicly trades under the symbol PSP on the TSX Venture Exchange.

Forward Looking Statements: This media release may contain forward looking statements based on expectations, estimates and projections of the management of Pacific Safety Products Inc. (the "Company"). All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures, results of cost reduction initiatives and financial results are forward looking statements. Some of the forward looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates", and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this media release and in documents filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as others, could cause results to differ materially from those anticipated. These factors include, but are not limited to the potential impact of the current economic downturn on the Company's business, the unpredictability of purchasing patterns by governmental agencies, the possibility of a deterioration in the Company's working capital position, the impact on the Company's liquidity if it were to go offside of the covenants in its debt facilities, the impact that changes in supplier payment terms or slow payment of accounts receivable could have on the Company's liquidity, the unavailability of or increase in the price of external capital to finance the Company's research, development and growth initiatives, changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates fluctuations of countries in which the Company does business, competitive pressures, successful integration of structural changes or downsizing initiatives, including restructuring plans, acquisitions, divestitures and alliances, cost of raw material, the uncertainty associated with the outcome of research and development of new products, including regulatory approval and market acceptance, and seasonality of sales in some products.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific Safety Products Inc.
    David Scott
    Chief Executive Officer
    (613) 254-9488 ext. 322