USA: Plans to sell or close eight of the 38 facilities operated by The Greenbrier Companies’ Wheels, Repair & Parts segment and improve performance at six others were announced on July 1.
The company hopes this will release a minimum return of capital of US$25m by December 31, as part of a strategy to enhance ‘inadequate’ margins and reduce capital employed by at least US$100m by the end of its 2014 financial year.
The eight unspecified sites which are to be sold or closed are described as ‘non-core or otherwise underperforming’. The six facilities which are to undergo operational improvements and negotiate ‘more balanced commercial terms’ with business partners could also be sold or closed if they do not meet increased targets for return on capital.
The Greenbrier Companies anticipates pre-tax restructuring charges of US$3m to US$5m, and has taken a US$76·9m non-cash goodwill impairment charge relating to the Wheels, Repair & Parts segment.