Royal Group receives notice from SEC of formal investigation
July 11 2005 - 10:01AM
PR Newswire (US)
Royal Group receives notice from SEC of formal investigation
TORONTO, July 11 /PRNewswire-FirstCall/ -- Royal Group Technologies
Limited (RYG.SV-TSX; RYG-NYSE) (Royal Group or the company) today
announced that it has received notification that the U.S.
Securities and Exchange Commission (SEC) is conducting a formal,
non-public investigation related to past accounting practices and
disclosures. "We have been communicating with the SEC to keep it
advised of the progress of Royal Group's internal investigations
related to the issues of concern to the company, the Ontario
Securities Commission (OSC), and Royal Canadian Mounted Police
(RCMP)," said James Sardo, Chair of the Special Committee of Royal
Group's Board that has been overseeing the investigation process.
"Royal Group will continue to cooperate fully with the SEC as we
are doing with the OSC and RCMP." Royal Group Technologies Limited
is a manufacturer of innovative, polymer-based home improvement,
consumer, and construction products. The company has extensive
vertical integration, with operations dedicated to provision of
materials, machinery, tooling, real estate, and transportation
services to its plants producing finished products. Royal Group's
manufacturing facilities are primarily located throughout North
America, with international operations in South America, Europe,
and Asia. Additional investment information is available on Royal
Group's web site at http://www.royalgrouptech.com/ under the
"Investor Relations" section. The information in this document
contains certain forward-looking statements with respect to Royal
Group Technologies Limited, its subsidiaries and affiliates. These
statements are often, but not always made through the use of words
or phrases such as "expect", "should continue", "continue",
"believe", "anticipate", "estimate", "contemplate", "target",
"plan", "budget", "may", "will", "schedule" and "intend" or similar
formulations. By their nature, these forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject
to significant, known and unknown, business, economic, competitive,
and other risks, uncertainties and other factors affecting Royal
Group specifically or its industry generally that could cause
actual performance, achievements and financial results to differ
materially from those contemplated by the forward-looking
statements. These risks and uncertainties include the outcome of
the ongoing internal review and investigations by the Special
Committee of the Board of Directors; fluctuations in the level of
renovation, remodeling and construction activity; changes in
product costs and pricing; an inability to achieve or delays in
achieving savings related to the cost reductions or increases in
revenues related to sales price increases; the sufficiency of our
restructuring activities, including the potential for higher actual
costs to be incurred in connection with restructuring activities
compared to the estimated costs of such actions; the ability to
recruit and retain qualified employees; the level of outstanding
debt and our current debt ratings; the ability to meet the
financial covenants in our credit facilities; the ability to
successfully replace our syndicated credit facility; changes in
product mix; the growth rate of the markets into which Royal
Group's products are sold; market acceptance and demand for Royal
Group's products; changes in availability or prices for raw
materials; pricing pressures resulting from competition; difficulty
in developing and introducing new products; failure to penetrate
new markets effectively; the effect on foreign operations of
currency fluctuations, tariffs, nationalization, exchange controls,
limitations on foreign investment in local business and other
political, economic and regulatory risks; difficulty in preserving
proprietary technology; adverse resolution of any litigation,
investigations, administrative and regulatory matters, intellectual
property disputes, or similar matters; changes in securities or
environmental laws, rules and regulations; currency risk exposure
and other risks described from time to time in publicly filed
disclosure documents and securities commission reports of Royal
Group Technologies Limited and its subsidiaries and affiliates. In
view of these uncertainties we caution readers not to place undue
reliance on these forward- looking statements. Statements made in
this document are made as of July 11, 2005 and Royal disclaims any
intention or obligation to update or revise any statements made
herein, whether as a result of new information, future events or
otherwise. DATASOURCE: Royal Group Technologies Limited CONTACT:
Richard W. Wertheim, Wertheim + Company Inc., (416) 594-1600, (416)
518-8479 (cell)
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