WASHINGTON (AP) -- Tyco Electronics Ltd. on Thursday announced restructuring plans in Europe that would include closing three automotive plants, which will affect about 850 employees and potentially double its restructuring costs for its fiscal fourth quarter.
The proposed changes are part of a broad restructuring plan initiated last year to streamline operations of the diversified electronics maker, improve productivity and reduce costs, the company said.
The company estimated it will book about $155 million in European automotive restructuring charges, with an expected completion goal of 15 months or less. That would bring total restructuring costs for its fiscal fourth quarter to around $135 million, or 27 cents a share, about double previous guidance of $67 million, or 9 cents a share, Tyco Electronics said.
Tyco Electronics still expects adjusted earnings per share of 65 cents to 67 cents for the quarter ending in September.
The company, nominally based in Bermuda but with corporate headquarters in Berwyn, Pa., was split off last year from manufacturing conglomerate Tyco International Inc.
The proposed changes in Europe, which include overhauling operations at several locations around the continent, are subject to consultation with several local works councils -- formal bodies of employees that must be informed of companies' decisions and consulted about them.
The three plants that would be closed are in Berga, Spain, and Val de Reuil and Chapareillan in France. Most of the 850 jobs would be eliminated, though likely not all, the company said; workers would be able to apply for other positions within the company.
Tyco Electronics last month cited weak demand from the automotive and consumer appliance industries in announcing it was eliminating about 100 North American jobs, about half of them cut from two central Pennsylvania facilities and some in North Carolina. Workers in Michigan, Mexico and Canada also will be affected.
Tyco Electronics shares fell $1.24, or 3.9 percent, to end at $30.55 in trading Thursday. They have traded between $30.19 and $40.34 over the past 52 weeks.