KEMET Announces Cost Improvement Actions
- Annual savings beginning
April 1, 2018of approximately $11 million
- Annual savings of approximately
$15 millionby Fiscal Year 2021
|Annual Savings (millions)|
|FY19 (1),(2)||FY20 (2)||FY21 (2)||FY19 - FY21|
|(1) FY19 begins April 2018|
|(2) Savings compared to current run rate|
Within the TOKIN legacy group, the Company will take a reduction in force across various internal operational and overhead functions. The Company will accrue approximately
“We made a general announcement as we launched our TOKIN acquisition that we would reduce expenses there to improve performance and this is the first step in that process. We continue to be excited about the opportunities that this combination brings to us,” stated Per Loof, KEMET’s Chief Executive Officer. “In addition, we believe relocating our powder facility to be more efficient and close to our manufacturing process is imperative and we continue to look for ways to make our F&E business more competitive. While our performance has been excellent to date, we continue to look for ways to enhance our operating profit and bring value to our shareholders,” continued Loof.
The Company’s common stock is listed on the
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
Company operates, as well as management’s beliefs and assumptions. Words such as “expects,” “anticipates,” “believes,” “estimates,” variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s judgment only as of the date hereof. The Company undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise.
Factors that may cause actual outcome and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to the following: (i) adverse economic conditions could impact our ability to realize operating plans if the demand for our products declines, and such conditions could adversely affect our liquidity and ability to continue to operate and cause a write down of long-lived assets or goodwill; (ii) an increase in the cost or a decrease in the availability of our principal or single-sourced purchased raw materials; (iii) changes in the competitive environment; (iv) uncertainty of the timing of customer product qualifications in heavily regulated industries; (v) economic, political, or regulatory changes in the countries in which we operate; (vi) difficulties, delays or unexpected costs in completing the restructuring plans; (vii) acquisitions and other strategic transactions expose us to a variety of risks; (viii) acquisition of TOKIN may not achieve all of the anticipated results; (ix) our business could be negatively impacted by increased regulatory scrutiny and litigation; (x) difficulties associated with retaining, attracting and training effective employees and management; (xi) the need to develop innovative products to maintain customer relationships and offset potential price erosion in older products; (xii) exposure to claims alleging product defects; (xiii) the impact of laws and regulations that apply to our business, including those relating to environmental matters; (xiv) the impact of laws relating to trade, export controls and foreign corrupt practices; (xv) changes impacting international trade and corporate tax provisions related to the global manufacturing and sales of our products may have an adverse effect on our financial condition and results of operations; (xvi) volatility of financial and credit markets affecting our access to capital; (xvii) the need to reduce the total costs of our products to remain competitive; (xviii) potential limitation on the use of net operating losses to offset possible future taxable income; (xix) restrictions in our debt agreements that could limit our flexibility in operating our business; (xx) any failure of our information technology systems to function properly or control unauthorized access to our systems may cause business disruptions; (xxi) any economic and demographic experience for our pension plans and other post-retirement benefit plans that is less favorable than our assumptions; (xxii) fluctuation in distributor sales could adversely affect our results of operations, and (xxiii) earthquakes and other natural disasters could disrupt our operations and have a material adverse effect on our financial condition and results of operations.
|Contact:||William M. Lowe, Jr.||Richard J. Vatinelle|
|Executive Vice President and||Vice President and|
|Chief Financial Officer||Treasurer|
Source: KEMET Corporation