Source: Crain’s Detroit Business
Troy, Mich. – Manufacturer Meritor Inc. said this week that it has planned a global restructuring to cut labor costs because of anticipated declines in sales volumes for heavy trucks and trailers.
The Troy-based company said in a regulatory filing that the plan was approved last Friday and it expected to incur about $20 million in severance costs. The company did not disclose how many jobs would be affected or at which locations.
A Meritor spokeswoman did not immediately respond to a request for details or comment.
Meritor reported it had about 8,600 employees worldwide as of Sept. 30 of last year, according to its annual report. Earlier this year, it paid $175 million to buy Troy-based AxleTech Inc., a supplier of systems for commercial vehicles, from a subsidiary of the Carlyle Group. The deal was intended to help increase Meritor’s exposure to aftermarket, defense and off-highway businesses.
For its fiscal third quarter, which ended June 30, the company reported net income of $86 million on revenue of $1.17 billion, up from net income of $64 million on revenue of $1.13 billion for the same quarter a year earlier.
Shares of Meritor (NYSE: MTOR) rose 63 cents, or 3.5 percent, to $18.50 Monday, Sept. 30. The stock is down from a one-year peak of about $25 reached in April.