WEST BEND, Wis. – Gehl Company has announced plans to discontinue the manufacturing and distribution of its agricultural implement product lines.
The company’s West Bend, Wis., agricultural implement manufacturing operations will permanently close following the wind down of operations over the next 60 days.
Bottom line. The product line discontinuation is expected to result in an after-tax charge to the company’s 2006 earnings of approximately $9.5 million, or $.76 per fully diluted share.
The after-tax charge is comprised of an $8.1 million non-cash asset impairment charge, related to inventory and fixed assets, and a $1.4 million cash charge related to severance and other employee costs.
The company anticipates a reduction in employee headcount of approximately 140 to match the decline in manufacturing and administrative activities associated with its agricultural implement product lines.
Headquarters not affected. The location of the company’s corporate headquarters in West Bend will not be impacted by this action.
“Over the last 20 years, there has been a continuous consolidation occurring in the U.S. dairy industry. Many of our small dairy farmer customers have either retired or sold their operations to larger producers.
“Consequently, the customer base for our agricultural implement lines has declined dramatically,” said William D. Gehl, Gehl Company Chairman and CEO.
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