SOUTHFIELD, MI– Federal-Mogul today announced a three-year restructuring plan as part of the company’s growth strategy designed to satisfy customer and market expectations while improving corporate performance and expanding in key growth markets. According to a press release issued early this morning, the restructuring could affect about 25 facilities and reduce the company’s workforce by approximately 10 percent by December 2008. Details of the plan have not yet been finalized.
The company anticipates recording charges for costs and expenses related to this restructuring plan in the current quarter and future periods. Costs likely to be incurred are generally expected to include certain severance costs, retention costs, benefits costs and impairment of the facilities and equipment involved. Preliminary cost estimates range from $125 million to $150 million.
“Our focus for the future will be on improving our performance in mature markets and expanding in key growth markets to be better positioned to serve our customers with our leading technology and world-class portfolio of quality products and services,” said Chairman, President and Chief Executive Officer Jose Maria Alapont. “While these decisions are difficult, our drive for global profitable growth is dependent on implementing strategies that continue to strengthen our competitiveness and profitability in this market environment.”
During the fourth quarter of 2005, Federal-Mogul continued to make significant advancement toward emergence from Chapter 11 in the U.S. and Administration in the UK.
“We are pleased with the progress in our emergence proceedings and implementation of our global profitable growth strategy as we continue to develop best cost manufacturing, service and engineering operations,” Alapont said.
For more information about Federal-Mogul, go to: www.federal-mogul.com .
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