Federal Signal Corp. To Dump Leach

Posted on February 22, 2006

In announcing its fourth quarter 2005 financial results, Federal Signal Corp. said it is “exiting” the refuse truck body business of its Leach unit. Leach is a manufacturer of refuse truck bodies with operations in Medicine Hat, Alberta and offices in Appleton, Wis. Federal Signal said it is evaluating divestiture alternatives for this business.

Leach Co. was a manufacturer of real loader refuse trucks based in Oshkosh when Federal Signal acquired the firm in 2002. In 2004, Federal Signal closed the Leach production plant in Oshkosh, Wis., moving production to Medicine Hat.

"Recently we made the decision to exit the Leach refuse truck body business in order to improve operating earnings and allow management teams to focus on our areas of strength. Despite aggressive restructuring efforts in the past two years resulting in some significant operating improvements, we have concluded that shareholder capital and management resources would be better deployed elsewhere,” said Robert D. Welding, president and chief executive officer.