EnPro says Q4 results will reflect $15.4M restructuring charge
EnPro has implemented a restructuring plan under which its STEMCO heavy-duty truck business will discontinue the manufacturing of brake drum friction. The restructuring plan involves the shutdown of production lines that occupy a portion of STEMCO's owned manufacturing facility in Rome, Georgia. STEMCO has elected to concentrate its drum friction resources specifically on formulating and sourcing, and the company will continue to offer a full range of brake shoes manufactured by approved suppliers to STEMCO's stringent quality standards. The company expects to record total restructuring expenses related to the exit of approximately $15.8M, composed primarily of impairment of inventory, equipment and other tangible assets. These expenses, other than severance and other costs of approximately $400,000 expected to be incurred in the first half of 2019, are non-cash charges and have been recognized in Q4 of 2018. The company provided FY18 earnings guidance in its Q3 earnings press release issued on October 31, 2018. Pursuant to the company's practice, this guidance excludes restructuring charges and is based on foreign exchange rates at the end of the Q3.