B/E Aerospace, Inc. (NASDAQ: BEAV) said it expects to recognize charges during the third quarter associated with its cost reduction program.
The charges reflect costs associated with facilities consolidation, product rationalization, workforce reductions and program discontinuance. The company plans to close several facilities, consolidate certain product lines and reduce headcount by approximately 450 employees. Total after-tax charges for the associated activities are expected to be approximately USD30 million.
“These initiatives are expected to reduce costs and improve efficiencies which are necessary due to the slower revenue growth expected in 2015 and 2016. We expect our initiatives to offset inflationary pressures on wages, occupancy and infrastructure costs and enable us to continue to generate incremental year-over-year margin improvement,” said Amin J. Khoury, Executive Chairman of B/E Aerospace.
B/E Aerospace is a leading manufacturer of aircraft cabin interior products. B/E Aerospace designs, develops and manufactures a broad range of products for both commercial aircraft and business jets.