Burnham announces reorganization

LANCASTER, PA. Burnham Corp. in early January announced creation of a holding company. Burnham reported that 2002 year-end business conditions have improved as a result of a more normal pattern of cold winter weather in its major market areas. Sales for 11 months of 2002 were $180.2 million, down slightly from $181.6 million in 2001. The firm said it believes that final sales from continuing operations

LANCASTER, PA. — Burnham Corp. in early January announced creation of a holding company.

Burnham reported that 2002 year-end business conditions have improved as a result of a more normal pattern of cold winter weather in its major market areas. Sales for 11 months of 2002 were $180.2 million, down slightly from $181.6 million in 2001. The firm said it believes that final sales from continuing operations in 2002 will be close to 2001, which was a record sales year for the company.

Income from continuing operations for 2002 was ahead of 2001 at the end of the third quarter. While final audited earnings for 2002 will not be released until early March, the company reported that its balance sheet remains strong.

For a number of years, Burnham Corp.’s subsidiaries and divisions have operated as autonomous business units each with its own distinct brand name, product line, sales organization, management team, and financial statements. Burnham headquarters has performed certain financial functions, such as banking, tax compliance and shareholder relations, on behalf of the companies. Separate marketing of the individual brands has been a key element of its business strategy and has allowed the company to offer a broad line of boiler products, at a variety of price points, through many channels of distribution. This strategy has been fundamental in achieving steady sales growth in a mature industry while at the same time achieving sales diversification, thus reducing business risk and volatility, the company noted.

In order to maximize the value of its brands, Burnham Corp.’s board of directors has reorganized the company internally so that the corporate structure more closely aligns with its business strategy and daily operations. Effective Jan. 8, 2003, Burnham’s business units, each organized as a separate subsidiary, were grouped under a new holding company called Burnham Holdings Inc. Going forward, the name of the company will be Burnham Holdings Inc. in lieu of Burnham Corp.