Home / Knowledge / News / Textiles / Lear Corporation announces cost reduction programs
Lear Corporation announces cost reduction programs
16
Oct '08
Lear Corporation announced aggressive cost reduction actions targeting an additional $150 million of improvement in operating performance over the next twelve months.

In light of current market conditions, the Company is implementing comprehensive actions to further reduce structural costs and improve operating results.

Additional details of the $150 million operating improvement plan will be provided as part of the Company's third quarter earnings conference call on October 30th.

Major new actions under the profit improvement plan include the following:

- Reducing program development costs, consistent with the significantly lower production outlook
- Acceleration of low-cost engineering and sourcing initiatives
- More targeted investments in growth initiatives, focused on high priority programs
- Further reductions in procurement, manufacturing, engineering and logistics costs to reflect present business conditions
- Further census reductions, temporary layoffs and additional thrifting of personnel-related costs
- Re-timing and selective reductions in restructuring spending
- Aggressive working capital management and capital spending efficiencies
- Supply base consolidation and other commercial actions

"We have been very aggressive in reducing our costs as industry production has declined, and we intend to remain well ahead of the curve," commented Bob Rossiter, Lear Chairman, Chief Executive Officer and President.

"We have faced challenging conditions before, and each time we have emerged as an even stronger Company. I fully expect the Company to overcome the present challenges as an even more formidable competitor."

Rossiter continued, "Management's strategy is to take all actions necessary to withstand the current industry downturn, maintain our focus on strategic priorities and position the Company for success when industry conditions improve."

"Longer term, we see global growth in automotive demand, with mature markets expected to recover in 2010 and emerging markets continuing to expand. With our global capabilities, low-cost footprint, superior quality and leading technologies, we are well positioned for success in the future."

In addition, the Company announced that it has drawn $400 million under its revolving credit facility to protect against possible short-term disruptions in the credit markets.

"The profit improvement plan outlined in this release is designed to restore the Company to a level of profitability necessary to preserve our financial flexibility going forward," said Matt Simoncini, Lear Senior Vice President and Chief Financial Officer.

"Given the recent volatility in the financial markets, we believe it is also prudent to temporarily increase our cash on hand by borrowing under our revolving credit facility."

At the end of the third quarter Lear had in excess of $500million in cash.

After this revolver borrowing, the Company will have more than $800 million in availability remaining under its revolving credit facility and continues to expect positive free cash flow for 2008.

Lear Corporation


Must ReadView All

Courtesy: American & Efird

Textiles | On 20th May 2018

A&E introduces Repel

American & Efird (A&E), a global leader in industrial sewing thread...

Archroma working with House of Denim Foundation

Textiles | On 20th May 2018

Archroma working with House of Denim Foundation

Archroma, a leader in colour and specialty chemicals, has joined...

Courtesy: Amazon

Textiles | On 20th May 2018

Amazon opening first fulfillment centre in Tucson

Amazon.com is opening its first fulfillment centre in Tucson, which...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search