Auto Interiors Parts Supplier To Close 10 Plants
By Michelle Krebs March 27, 2009MILWAUKEE -- Johnson Controls Inc., which makes mostly seats and interior components for the auto industry, said Friday it will close 10 plants, though it did not specify which plants nor how many jobs would be cut.
The company said it will take a second-quarter charge to cover the cost of these actions of $215 million, which will put it in the loss column. However, the supplier said it expects to be profitable in the third and fourth quarters despite its forecast for lower vehicle production. Johnson Controls is forecasting North American vehicle production at 8.8 million units this year and Europe at 14.3 million units, down from its December forecast.
The company does not expect to need further restructuring as it has improved its liquidity with the completion of a debt offering earlier this month. Its $495-million restructuring was announced in the fourth quarter last year.
"While we don't expect near-term recoveries in our markets, we believe we can manage through this environment from a position of strength and enhance our ability to gain further market share while improving our margins," said Stephen Roell, chairman and chief executive.
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