DOWNERS GROVE, Ill. (AP) -- ATC Technology Corp., a vehicle remanufacturing and logistics company, said Tuesday it will close a remanufacturing facility in Missouri as part of a restructuring of its North American drivetrain operations, citing the ongoing woes of the automotive industry.
The company also narrowed its full-year guidance to a level that would meet or fall short of Wall Street predictions, blaming continued soft demand for its products.
ATC said the operations at its Springfield, Mo., automatic transmission remanufacturing plant will be consolidated with existing operations in Oklahoma City next year. The closure is expected to result in the elimination of all of its salaried and hourly jobs, but those employees will be offered jobs in Oklahoma City, ATC said.
The company said it will transfer production to the Oklahoma City facility over the next nine months, to coincide with the expiration of the Springfield facility lease at the end of 2009.
ATC said it expects the restructuring to save the company about $6 million a year on a pretax basis, with about 60 percent of the annual savings to be realized in 2009.
The company said it also expects to record total pretax charges of about $14 million over the next nine months, including about $6 million of cash charges.
About $8 million to $9 million, including about $1 million in cash charges, is expected to be recorded in 2008 with the rest to come in the first half of 2009, ATC said.
Taking into account the restructuring charges, ATC said it expects to post a full year loss from continuing operations of 35 cents to $1.11 per share, including goodwill impairment charges of $2.02 to $2.70 per share and restructuring charges of 23 cents to 26 cents per share.
Excluding those charges, the company said it expects to post an adjusted profit from continuing operations of $1.85 to $1.90 per share, narrowed from its previous guidance of $1.85 to $1.95 per share.
Analysts polled by Thomson Reuters expect an adjusted profit of $1.90 per share, on average.
ATC shares fell 13 cents to $16.85 in morning trading.