13th
April 2009 - ArvinMeritor
Announces Annual Savings of $430 Million as Result of Aggressive
Cost-Reduction Actions
ArvinMeritor has announced
that it has taken actions since
October 2008 which will result in savings of approximately
$430 million on an annual basis.
The difficult conditions we
continue to experience in our commercial and light vehicle markets has
required us to take aggressive steps during the past six months to align
our organization to the lower capacity levels," said
Chip McClure, chairman, CEO and president. "Many of these
actions have regrettably impacted our employees, but the ArvinMeritor
leadership team is committed to successfully manage the company through
the continuing economic turbulence. We identified and implemented these
actions quickly and are pleased to report the savings are significant,
which will help protect the long-term health of the company."
In the months of February
and March, the company implemented initiatives - including the reduction
of nearly 250 employees and other cost reduction actions - that will
result in annual savings of $95 million, or
$64 million in fiscal year 2009 which is incremental to the
$335 million in savings the company announced during its first
quarter earnings report on Feb. 5, 2009.
Since October, ArvinMeritor
has announced the following cost-reduction actions:
| |
Workforce reduction of more
than 1,800 global employees |
| |
Plant-level furlough
programs, including government supported programs |
| |
Announced the closure of two
manufacturing facilities (Tilbury and
Milton, Ontario, Canada) |
| |
Pay reductions for salaried
employees worldwide, which was achieved through base salary
adjustments and/or curtailed production schedules |
| |
Eliminated matching
contribution to the U.S. 401-K |
| |
Suspended merit increases
for fiscal year 2009 |
| |
Reduced capital spending |
| |
Extended shutdowns at all
plants |
| |
Eliminated company-paid
education and training programs |
| |
Reduced contribution to the
charitable trust |
| |
Suspended quarterly dividend |
| |
Reduced annual Board of
Directors compensation by 10 percent |
| |
Eliminated all non-critical
discretionary spending |
"Through the implementation of these
actions, our team continues to demonstrate their commitment to do what
is necessary to respond aggressively to the current difficult economic
conditions," said McClure.
About ArvinMeritor
ArvinMeritor, Inc. is a premier global
supplier of a broad range of integrated systems, modules and components
to the motor vehicle industry. The company marks its centennial
anniversary in 2009, celebrating a long history of 'forward thinking.'
The company serves commercial truck, trailer and specialty original
equipment manufacturers and certain aftermarkets, and light vehicle
manufacturers. ArvinMeritor common stock is traded on the New York Stock
Exchange under the ticker symbol ARM.
Source:
ArvinMeritor Press Release