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Kaman announces restructuring plan

News International-French

19 Sep 2017

The company announces a restructuring plan resulting from its ongoing effort to improve capacity utilization and operating efficiency to better position the Company’s Aerosystems business for increased profitability and growth. The restructuring primarily affects the Aerospace segment’s Connecticut Composite Structures division in Bloomfield, Connecticut, and its fabricated products operations in Hyde, United Kingdom. 

In the U.S., the company expects to close its Connecticut Composite Structures division and transfer its programs to the company’s composites facility in Wichita, Kansas and to its Air Vehicles and MRO division in Bloomfield, Connecticut. In the United Kingdom, the company expects to transfer substantially all of its fabricated products production currently taking place at the company’s Hyde facility to its Darwen facility. Any planned workforce reductions at the Hyde facility are subject to change to reflect the outcome of any necessary consultations and negotiations with the unions and works councils representing the affected employees. 

The company currently expects these actions will result in approximately $8.0 million to $10.0 million in pre-tax restructuring charges, beginning in the third quarter of 2017 through the planned completion of restructuring activities in the fourth quarter of 2018, approximately $5.0 million of which is expected to be recorded in 2017. Of these charges, $5.5 million to $6.5 million are expected to result from cash outlays for employee separation and other closure-related expenses and $2.5 million to $3.5 million of the charges are expected to relate to non-cash charges for the write down of inventory and the impairment of long-lived assets. On an annualized basis beginning in 2019, the company anticipates these restructuring actions will result in total cost savings of approximately $4.0 million.

Certain of the foregoing statements regarding workforce reductions, restructuring charges, the timing of those actions, anticipated savings and cash expenditures constitute “forward-looking statements.” These statements are protected by the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. There can be no assurance that these forward-looking statements will be accurate since they are based on many assumptions which involve risks and uncertainties, both known and unknown. The following important factors could cause the estimated employee reductions, restructuring expense, estimated savings and timing to differ: changes in economic or industry conditions; issues arising from rationalization of operations; prolonged negotiations and consultations with the union and/or works councils and other risks identified in the Company’s reports and public announcements filed with or furnished to the Securities and Exchange Commission. Any forward-looking statements included in this release are as of the date made and the Company does not intend to update them if its views later change. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this release.