SACRAMENTO, Calif. (July 12)—GenCorp Inc. is discussing with an unidentified third party the sale of its GDX Automotive business, which makes extruded weatherstripping for major car makers worldwide.
The company deferred its second quarter earnings release to July 15 from July 12 as the announcement about the GDX negotiations went public.
GenCorp also said it has will classify GDX Automotive as a discontinued operation as of the second quarter of 2004, taking a onetime pretax charge of between $250 million and $300 million for the estimated disposal value.
The firm said the sale talks may not be successful, and even if definitive agreement is reached, there can be no assurances that a sale will be completed. GDX was $14 million in the red in the first quarter of fiscal 2004, after suffering a 77.8-percent drop in earnings last year, to $8 million.
Sales last year were $786 million last year, or roughly two-thirds of GenCorp´s sales.