Johnson Controls on Wednesday announced restructuring activities which will cost the vehicle interiors and battery specialist an estimated US$450 to $500m pre-tax in its 2008 fourth quarter.
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The restructuring charge concerns cost reduction initiatives across the business and includes workforce reductions and plant consolidations.
The company expects to substantially complete the plans by early 2010.
“The automotive-related restructuring is in response to the fundamentals of the European and North American automotive markets,” Johnson said.
“The actions target reductions in the company’s cost base by decreasing excess manufacturing capacity due to lower industry production and the continued movement of vehicle production to low-cost countries, especially in Europe.
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By GlobalData“Power Solutions [batteries] actions are focused on optimising its regional manufacturing capacity.”
Johnson Controls said the restructuring would improve its long-term growth prospects in its highly competitive global markets.
The company’s fourth quarter ends on 30 September and it will report earnings on 23 October.
