Kaman Corporation (NYSE:KAMN) has announced a restructuring plan resulting from its ongoing effort to improve capacity utilization and operating efficiency to better position the company´s Aerosystems business for increased profitability and growth, the company said.
The restructuring primarily affects the Aerospace segment´s Connecticut Composite Structures division in Bloomfield, Connecticut, and its fabricated products operations in Hyde, United Kingdom.
In the US, the company expects to close its Connecticut Composite Structures division and transfer its programs to the company´s composites facility in Wichita, Kansas and to its Air Vehicles and MRO division in Bloomfield, Connecticut. In the United Kingdom, the company expects to transfer substantially all of its fabricated products production currently taking place at the company´s Hyde facility to its Darwen facility. Any planned workforce reductions at the Hyde facility are subject to change to reflect the outcome of any necessary consultations and negotiations with the unions and works councils representing the affected employees.
The company currently expects these actions will result in approximately USD 8.0 million to USD 10.0 million in pre-tax restructuring charges, beginning in the third quarter of 2017 through the planned completion of restructuring activities in the fourth quarter of 2018, approximately USD 5.0 million of which is expected to be recorded in 2017. Of these charges, USD 5.5 million to USD 6.5 million are expected to result from cash outlays for employee separation and other closure-related expenses and USD 2.5 million to USD 3.5 million of the charges are expected to relate to non-cash charges for the write down of inventory and the impairment of long-lived assets. On an annualized basis beginning in 2019, the company anticipates these restructuring actions will result in total cost savings of approximately USD 4.0 million.
Kaman Corporation, founded in 1945 by aviation pioneer Charles H. Kaman, and headquartered in Bloomfield, Connecticut conducts business in the aerospace and industrial distribution markets. The company produces and markets proprietary aircraft bearings and components. Kaman offers more than four million items including bearings, mechanical power transmission, electrical, material handling, motion control, fluid power, automation and MRO supplies to customers in virtually every industry. More information is available at www.kaman.com.