Tecumseh Products Company Announces Operational Actions and Selected Staff Reductions
27 April 2007 - 8:00PM
PR Newswire (US)
TECUMSEH, Mich., April 27 /PRNewswire-FirstCall/ -- Tecumseh
Products Company (Nasdaq: TECUA; TECUB) ("Tecumseh" or the
"Company") today announced that, to further improve the Company's
operating efficiency and help position it for a return to
profitability, it is downsizing certain of its non-core operations
and eliminating a total of approximately 310 associated positions.
The actions will simplify the Company's management structure and
eliminate duplicative and unnecessary activities. The moves include
trimming staff at seven North American facilities and one in the
Czech Republic, and reducing overhead supporting those and other
operations. These initiatives will have no impact on Tecumseh's
ongoing support for its product offerings, including its Scroll
compressor and the specialty compressor products marketed under its
Masterflux brand. James J. Bonsall, Tecumseh's President and Chief
Operating Officer, said: "It is always regrettable when a company
must reduce headcount to achieve the necessary level of operational
efficiency and profitability. Nevertheless, our customers should
see virtually no change as a result of the moves announced today."
CAUTIONARY INFORMATION REGARDING FORWARD-LOOKING STATEMENTS This
release may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 that are
subject to the safe harbor provision created by that Act. In
addition, forward-looking statements may be made orally in the
future by or on behalf of the Company. Forward-looking statements
can be identified by the use of terms such as "expects," "should,"
"may," "believes," "anticipates," "will," and other future tense
and forward-looking terminology. Readers are cautioned that actual
results may differ materially from those projected as a result of
certain risks and uncertainties, including but not limited to i)
changes in business conditions and the economy in general in both
foreign and domestic markets; ii) the effect of terrorist activity
and armed conflict; iii) weather conditions affecting demand for
air conditioners, lawn and garden products, portable power
generators and snow throwers; iv) the success of our ongoing effort
to bring costs in line with projected production levels and product
mix; v) financial market changes, including fluctuations in
interest rates and foreign currency exchange rates; vi) economic
trend factors such as housing starts; vii) emerging governmental
regulations; viii) availability and cost of materials, particularly
commodities, including steel, copper and aluminum, whose cost can
be subject to significant variation; ix) actions of competitors; x)
the ultimate cost of resolving environmental and legal matters; xi)
our ability to profitably develop, manufacture and sell both new
and existing products; xii) the extent of any business disruption
that may result from the restructuring and realignment of our
manufacturing operations or system implementations, the ultimate
cost of those initiatives and the amount of savings actually
realized; xiii) the extent of any business disruption caused by
work stoppages initiated by organized labor unions; xiv) the
ability of the Company to maintain adequate liquidity in total and
within each foreign operation; xv) potential political and economic
adversities that could adversely affect anticipated sales and
production in Brazil; xvi) potential political and economic factors
that could adversely affect anticipated sales and production in
India, including potential military conflict with neighboring
countries; xvii) our ability to reduce a substantial amount of
costs in the Engine & Power Train group associated with excess
capacity; and xviii) the ongoing financial health of major
customers. The forward-looking statements are made only as of the
date of this report, and we undertake no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise. Contacts: Roy Winnick or
Michael Freitag Kekst and Company 212-521-4842 or 4896 Teresa Hess
Director, Investor Relations Tecumseh Products Company 517-423-8455
Press releases and other investor information can be accessed via
the Investor Relations section of Tecumseh Products Company's
Internet web site at http://www.tecumseh.com/. Tecumseh Products
Company now offers media access to news releases via RSS. Please go
to http://tecumseh.mediaroom.com/ to sign up for our RSS feeds.
DATASOURCE: Tecumseh Products Company CONTACT: Roy Winnick, , or
Michael Freitag, , of Kekst and Company, +1-212-521-4842 or 4896;
or Teresa Hess, Director, Investor Relations of Tecumseh Products
Company, +1-517-423-8455, Web site: http://www.tecumseh.com/
http://tecumseh.mediaroom.com/ Company News On-Call:
http://www.prnewswire.com/comp/842875.html
Copyright