WASHINGTON (dpa-AFX) - General Cable Corp. (BGC) said Wednesday that it will eliminate about 1,000 positions globally, representing nearly 7% of the company's workforce, as part of a restructuring program designed to improve profitability and return on invested capital in each of its three reportable segments.
The company said the restructuring program is focused on the closure of certain underperforming assets as well as the consolidation and realignment of other facilities. The company is also implementing reductions in selling, general and administrative expenses globally.
The restructuring program, which is expected to be completed over the next 12 months, is expected to generate $10 million of savings in 2014, increasing to ongoing annual savings of $75 million beginning in 2016.
As a result of the restructuring, the company expects to record pre-tax charges of about $200 million, a majority of which will be incurred in 2014.
Additionally, the company said it now expects adjusted operating income for the full year of 2014 to be in the range of $200 to $230 million, down from its previously communicated estimate of around $230 million.
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