In Line with Strategic Playbook, L.B. Foster Company to Exit Bridge Grid Deck Product Line in Bedford, PA to Focus on Growing Bridge Forms Business; Company Reiterates 2023 Guidance

PITTSBURGH, Aug. 30, 2023 (GLOBE NEWSWIRE) -- L.B. Foster Company (NASDAQ: FSTR), a global technology solutions provider of products and services for the rail and infrastructure markets (the "Company"), today announced it would discontinue its fabricated bridge grid deck manufacturing and commercial operations located in Bedford, PA. The decision to exit the product line, which includes the separation of certain union and non-union employees both in Bedford and Greentree, PA, is a result of a weak bridge grid deck market condition and outlook due to customer adoption of newer technologies replacing the grid deck solution. It also allows the Company to focus on its growing bridge forms product line which will continue to be produced at its Bedford manufacturing site.

The Company expects to cease grid deck operations during the fourth quarter of 2023. In connection with its exit of the product line, which represents approximately $9 million in sales over the last twelve months, the Company expects to incur certain cash and non-cash exit costs in 2023 ranging between approximately $2.6 million and $2.9 million.

John Kasel, President and Chief Executive Officer, commented, “In line with our strategic playbook and portfolio transformation objectives, this action is being taken to improve the overall health and prospects of our bridge business located in Bedford. Our bridge operation has been part of the Bedford community for over 50 years and the grid decking solution has a proud legacy and recognition in the market. Our focus today remains on expanding the bridge forms product line in Bedford and on supporting our customers and employees to ensure a smooth transition for everyone affected by this necessary decision.”

Impact to 2023 Financial Guidance
The exit of the bridge grid decking product line is not expected to have a material impact on the Company’s financial guidance for its fiscal year ending December 31, 2023, with net sales expected to range between $520 million and $550 million and adjusted EBITDA expected to range between $28 million to $32 million.

About L.B. Foster Company
Founded in 1902, L.B. Foster Company is a global technology solutions provider of engineered, manufactured products and services that builds and supports infrastructure. The Company’s innovative engineering and product development solutions address the safety, reliability, and performance needs of its customer's most challenging requirements. The Company maintains locations in North America, South America, Europe, and Asia. For more information, please visit www.lbfoster.com.