Commercial Vehicle Group Announces Restructuring, Cost Reduction Plans
Commercial Vehicle Group announced a new president and CEO and other cost-cutting and restructuring actions.
Commercial Vehicle Group Inc., New Albany, Ohio, announced restructuring and cost reduction actions, including management changes, that are expected to lower operating costs by $8 million to $12 million annually.
These actions will begin before the end of the year and reflect improvements to manufacturing footprint and capacity utilization. Patrick E. Miller was appointed president and CEO, following the resignation of Richard P. Lavin, effective November 20. Miller will also replace Lavin on the Board of Directors.
Lavin, a Caterpillar veteran, was brought aboard as CEO in May 2013, to replace outgoing CEO Mervin Dunn, and later that year another "executive realignment" was announced.
Miller, who most recently was president of the Company's Global Truck & Bus Division, has been with Commercial Vehicle Group since 2005.
Earlier this month, the company announced weaker than expected quarterly earnings of $0.10 EPS, missing the Thomson Reuters’ consensus estimate of $0.14 by $0.04.
"These restructuring and cost reduction actions reflect, in part, the challenging conditions in our global construction and agriculture end markets, but are also the result of the ongoing evaluation of our manufacturing footprint and capacity utilization," Miller said. "We are committed to a renewed focus on cost management and margin protection in the near term, as we work to enhance our competitive position, top line growth, and earnings over the longer term.
"We know the impact of these decisions will be difficult for our employees and the communities affected by closures. We do not make these decisions lightly," added Miller.
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