Commercial Vehicle Group, Inc. (the “Company”) (Nasdaq: CVGI) announced today restructuring and cost reduction actions that are expected to lower operating costs by $8 to $12 million annually when fully implemented. These actions will begin before the end of the year and reflect improvements to manufacturing footprint and capacity utilization, and to Selling, General and Administrative (SG&A) costs, including an executive realignment.
Pre-tax costs associated with these actions, including associated capital investment, are expected to be $12 to $19 million, the majority of which is employee-related separation costs and other costs associated with the transfer of production and subsequent closure of facilities.
President and Chief Executive Officer, Pat Miller said “These restructuring and cost reduction actions reflect, in part, the challenging conditions in our global construction and agriculture end markets, but are also the result of the ongoing evaluation of our manufacturing footprint and capacity utilization. We are committed to a renewed focus on cost management and margin protection in the near term, as we work to enhance our competitive position, top line growth, and earnings over the longer term.”
“We know the impact of these decisions will be difficult for our employees and the communities affected by closures. We do not make these decisions lightly,” added Miller.
A conference call to discuss this press release is scheduled for Tuesday, November 24th at 10:00 a.m. Eastern Time. The participant dial in number is (866) 300-8704 and the conference ID is 86685899.
This call will be webcast by Nasdaq and can be accessed at Commercial Vehicle Group’s website at www.cvgrp.com where it will be archived for one year.
