TTM Technologies to consolidate manufacturing, will close three plantsStaff writer ▼ | October 1, 2015
TTM Technologies, a printed circuit board (PCB) manufacturer, plans to close three facilities in order to improve total plant utilization, operational performance and customer focus.
Closing factories To improve total plant utilization
The plant closures are part of a comprehensive integration plan that the company commenced following the acquisition of Viasystems on May 31, 2015.
TTM will offer customers of the affected plants uninterrupted support at its remaining 25 manufacturing sites worldwide.
Over the next three to six months, TTM will close the three affected sites and, where appropriate, transfer employees to other facilities nearby. Separation and other benefits will be extended to those employees who are not transferred to another TTM facility.
The company expects a total headcount reduction of approximately 550 employees in conjunction with the plant closures and consolidation.
The company expects to record between $15 and $20 million in separation, asset impairment and disposal costs related to this restructuring primarily between now and June 30, 2016. Approximately 50% of these costs will be in the form of cash expenditures and the rest in the form of non-cash charges.
These actions will have no impact on TTM's non-GAAP third quarter 2015 results and the company remains on track to achieve its previously reported third quarter 2015 guidance of revenue in the range of $640 million to $680 million and non-GAAP earnings in the range of $0.14 to $0.20 per diluted share.
This actions are expected to yield annual cost savings of approximately $16.5 million and the company believes it remains on track to achieve its annualized synergy goal of at least $55 million associated with the integration of Viasystems. ■