( ARM) said it has taken cost-cutting actions since October, including workforce reductions, plant closings and suspending dividend payments, that will save the company approximately $430 million on an annual basis.
The Troy, Mich.-based auto-parts supplier said its expense-reduction measures have included cutting more than 1,800 positions globally, shutting two plants in Canada, pay reductions for salaried employees and the suspension of merit increases for 2009, the elimination of matching 401(k) contributions, reduced capital spending, suspending its quarterly dividend payment, reducing compensation for its board of directors by 10%, and the elimination of company-paid education and training programs.
In February and March, ArvinMeritor laid off nearly 250 employees and implemented other cost-reduction actions that will result in annual savings of $95 million, or $64 million in fiscal year 2009. During its first-quarter earnings report on Feb. 5, the company announced $335 million in savings.
"The difficult conditions we continue to experience in our commercial and light vehicle markets has required us to take aggressive steps during the past six months to align our organization to the lower capacity levels," said Chip McClure, CEO and president. "Through the implementation of these actions, our team continues to demonstrate their commitment to do what is necessary to respond aggressively to the current difficult economic conditions."
said it had received a notice from the
New York Stock Exchange
that it had fallen below the exchange's standard related to total market capitalization and stockholders' equity.
Just days before that,
Moody's Investors Service
cut some of its ratings for ArvinMeritor, citing expectations of weak demand for commercial vehicle parts.
Shares of ArvinMeritor were up 3 cents, or 2.5%, to $1.23 in early trading. Among other parts suppliers,
was sliding 4.2%, and
Hayes Lemmerz International
( HAYZ) was falling 6.4%.
was adding 1.6%.
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