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Kaman (NYSE:KAMN) introduced on Wednesday wide-ranging value discount efforts to drive round $25M in annual financial savings.
The price reductions will see Kaman incur round $10M-$12M in one-time pre-tax restructuring expenses and not less than $54M in non-cash expenses associated to write-down of plane, contract prices, extra spare components and tools inventories.
The price restructuring initiatives will embrace job cuts, eliminating non-value added actions and consolidating JPF manufacturing. Kaman can even discontinue manufacturing of its Okay-MAX helicopter, which it has been manufacturing over the previous 30 years. It didn’t disclose the magnitude of the job cuts.
Ian Walsh, CEO of Kaman, stated: “In December, we introduced plans to consolidate our Joint Programmable Fuze manufacturing and optimize our value construction to make sure alignment with the very best progress alternatives. Right this moment’s bulletins symbolize a continuation of those efforts and underscores Kaman’s dedication to monetary and operational excellence. We proceed to efficiently execute our complete portfolio optimization initiatives to understand our focused value financial savings and operational efficiencies, which we consider will assist right-size our firm and improve Kaman’s incomes energy. We additionally consider these actions will assist us de-lever and improve monetary flexibility to proceed investing in Kaman’s highest-margin, highest-quality property and alternatives, positioning our firm to higher serve the tip markets with essentially the most favorable progress prospects.”
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