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General Cable eyes $75 million savings through restructuring

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HIGHLAND HEIGHTS, Ky.—General Cable Corp. has started a restructuring program that it expects eventually will save the firm $75 million a year.

The program is focused on closing certain “underperforming assets,” along with consolidating and realigning other facilities, the company said. It also is implementing reductions in selling, general and administrative expenses globally in an effort to improve profitability and return on invested capital.

General Cable expects the actions to result in 1,000 job cuts globally, representing almost 7 percent of the firm's work force. The program is forecast to generate $10 million in savings this year, with ongoing annual savings of $75 million beginning in 2016. The firm said it expects to record pre-tax charges of about $200 million, including approximately $80 million in cash costs.

“While we believe our business is well-positioned for the long term, we are continuing to face ongoing challenges in certain end markets and persistently uneven global demand and pricing,” President and CEO Gregory Kenny said in a statement. “While these are difficult decisions that affect the lives of our employees, we believe these actions are essential to improving both the near-term performance as well as assuring the long-term success of the company.”

Highland Heights-based General Cable makes products for the energy, industrial, construction, specialty and communications markets. It uses silicone and other elastomers in some of its goods.