Mecachrome International to lay off 41 workers in Canada, 150 in France
Jul 23, 2008, Montreal - Source: CP [The Canadian Press] - Aircraft and automotive parts manufacturer Mecachrome International is cutting 41 jobs in Canada and 150 in France as part of a restructuring amid lower demand for its products.
Jul 23, 2008, Montreal – Source: CP [The Canadian Press] – Aircraft and automotive parts manufacturer Mecachrome International is cutting 41 jobs in Canada and 150 in France as part of a restructuring amid lower demand for its products.
The Montreal-based company said Wednesday that the job cuts will
be completed by the end of September, and stem from its efforts to
Mecachrome has hired a financial adviser to help review its
operations during two phases of restructuring, designed to restore
the company to a cash flow break-even position in 2009. The first
phase, announced in May, is expected to generate 10 million euros,
or nearly $16 million, in annual cost savings.
Chief financial officer Stephan Yazedjian told analysts Wednesday
that all options are being reviewed to turn around Mecachrome's
fortunes, except for a sale or privatization of the company.
Mecachrome announced last week that it has set up a management
committee to head the business following the resignation of
Guillaume Casella as president and CEO.
The company said that while long term fundamentals in the
aerospace industry remain positive and Mecachrome's backlog remains
strong, continued delays to key aircraft programs by Airbus and
Boeing (NYSE:BA) are squeezing the bottom line.
Mecachrome is also being hit by a freeze in an engine development
program for Formula 1 racing.
Mecachrome designs, manufactures and assembles complex
precision-engineered components for aircraft and automotive
applications, including aerostructural and aircraft engine parts,
high-end automobile engine components and motor racing engines.
The company operates 11 plants in France and Canada and employs
more than 2,000 people.
Mecachrome shares, which are down 85 per cent on the year, gained
12 cents, of 6.38 per cent, to $2 in morning trading Wednesday on