Accuride Announces Second Phase of Restructuring Plan to Increase Efficiency and

[2008-12-23 17:05:19]

Total costs associated with the Phase Two restructuring over the next five quarters include approximately $16.3 million in expenses plus $10 million in capital expenditures. The Company expects $8 million of cash expenses, including severance of $4.1 million, relocation of $2.9 million, and lease cost of $1.0 million. The Company will recognize $2.2 million of severance costs in the fourth quarter of 2008 which will impact cash in 2009. In addition, the Company will recognize a non-cash write off / accelerated depreciation of approximately $8.3 million related to the decommission of assets. It is anticipated that the restructuring will save the Company an estimated $5.6 million in 2009 and generate annual cost savings of approximately $15.4 million thereafter.

Source: The Auto Channel
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