Soap box = on

I have been employed by my current company for 25 years. I am involved in
product development at the company which has about 200million a year in
sales revenue. Each employee in the company (which is privately held) is a
stock holder.

Based on this experience I can assure you that if a group like this were to
buy the Flyer side of Lionel we would not make decisions much better than
they have. (if as good) Investing in tooling and materials to produce a
product that may or may not sell is a big gamble. It is not uncommon when
dealing with the rather fickle consumer to continuously have over 25% (or
more) of your annual sales volume invested in inventory. Not to mention
money tied up in capital investments.

I can assure that the altruistic views of a group like this would change if
it was YOUR money.

Profits in a company are delecate. Not every company out there is an Enron
or Worldcom. In the end getting to keep 5% of the pie Net after taxes  is
doing pretty good for most companys.

And when a comany goes from 5% profit to 10% this will be loudly announced
on the news as 100% increse in profits. We all know the math is correct, but
John Q. average gets a vision that much different at the mention of 100%
increase.

Many were outraged when Lionel moved assembly off shore. The truth is you
might not be able to buy anything from them at all if they didn't. Labor
costs in this country are just getting too high for companys like this to
exist with a global economy. Why do you think Showcase has most of their
work done overseas? You can buy aluminum RIM injection molding tooling in
Taiwan/China for what aluminum vacuum formed tooling costs in the U.S.

I am sure this move seemed to many to be a strictly moral issue. And for
some reason people think that decisions made for financial reasons are
immoral. I can assure that a company who does not make frugal financial
decisions will not have any employees to employ. So in my opinion to not be
conservative is to risk the livelyhood of employees.

Sorry,

Soapbox = off

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