FUEL TECH, INC. (NASDAQ:FTEK) Files An 8-K Costs Associated with Exit or Disposal Activities
Item 2.05. Costs Associated with Exit or Disposal Activities.
Fuel Tech, Inc. (“Fuel Tech,” the “Company,” “we,” “us” and “our”) has initiated a corporate initiative designed to re-prioritize resource allocation and further reduce the Company’s cost structure for its Beijing Fuel Tech Environmental Technologies Co., Ltd. (Beijing Fuel Tech) operation in China. As part of the corporate initiative, effective January 14, 2019, Fuel Tech has suspended further business development activity for its Air Pollution Control (APC) operation in Beijing Fuel Tech.
On January 17, 2019, we informed our employees of operational efficiency and cost-reduction actions related to the APC operation at Beijing Fuel Tech intended to accomplish the above described corporate initiative. These actions include organizational design changes at Beijing Fuel Tech and other right-sizing initiatives expected to result in reductions in force primarily at Beijing Fuel Tech, as well as implementing processes for the review of other potential operational efficiency and cost-reduction initiatives at that business operation.
The Company expects to substantially complete the organizational design change actions by the end of the second quarter of 2019.
The Company is currently unable to determine an estimate of the total amount (or range of amounts) that it expects to save or that it expects to incur in connection with the proposed actions, including with respect to each major type of cost associated therewith and the amount or range of amounts with respect thereto that are expected to result in future cash expenditures.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
The statements contained herein include “forward-looking statements” as defined in Section 21E of the Securities Exchange Act of 1934, as amended, which are made to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and reflect Fuel Tech’s current expectations regarding future growth, results of operations, cash flows, performance and business prospects, and opportunities, as well as assumptions made by, and information currently available to, our management. Fuel Tech has tried to identify forward-looking statements by using words such as “anticipate,” “believe,” “plan,” “expect,” “estimate,” “intend,” “will,” and similar expressions, but these words are not the exclusive means of identifying forward-looking statements. These statements are based on information currently available to Fuel Tech and are subject to various risks, uncertainties, and other factors, including, but not limited to, those discussed in Fuel Tech’s Annual Report on Form 10-K in Item 1A under the caption “Risk Factors,” and subsequent filings under the Securities Exchange Act of 1934, as amended, which could cause Fuel Tech’s actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these statements. Fuel Tech undertakes no obligation to update such factors or to publicly announce the results of any of the forward-looking statements contained herein to reflect future events, developments, or changed circumstances or for any other reason. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those detailed in Fuel Tech’s filings with the Securities and Exchange Commission.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
FUEL TECH, INC. Exhibit
EX-99.1 2 ftek-2019011819xex991.htm EXHIBIT 99.1 Exhibit CONTACT:Jim Pach Devin Sullivan Principal Financial Officer Senior Vice President (630) 845-4500 The Equity Group Inc. (212) 836-9608FOR IMMEDIATE RELEASEFUEL TECH TO SUSPEND POLLUTION CONTROL OPERATION IN CHINA SUBSIDIARY AS PART OF ONGOING OPERATIONAL IMPROVEMENT INITIATIVES WARRENVILLE,…
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About FUEL TECH, INC. (NASDAQ:FTEK)
Fuel Tech, Inc. is a technology company. The Company is engaged in the development, commercialization and application of technologies for air pollution control, process optimization, combustion efficiency and engineering services. It operates through three segments: Air Pollution Control technology, FUEL CHEM technology and Fuel Conversion. The Air Pollution Control technology segment includes technologies to manage nitrogen oxides (NOx) emissions in flue gas from boilers, incinerators, furnaces and other stationary combustion sources. The FUEL CHEM technology segment uses chemical processes in combination with computational fluid dynamics (CFD) and chemical kinetics modeling (CKM) boiler modeling, for the control of slagging, fouling, corrosion, opacity and other sulfur trioxide-related issues in furnaces and boilers through the addition of chemicals into the furnace. The Fuel Conversion segment represents the CARBONITE fuel conversion process and technology.