T&N to cut global jobs after pounds 388m loss
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.T&N, the automotive components group, was left reeling from a series of blows yesterday after unveiling plans to axe an expected 2,500 jobs from its worldwide operations alongside a record pounds 388m loss for last year.
It also emerged from Germany that a key 24.9 per cent stake in Kolbenschmidt, a leading German pistons manufacturer which T&N has been stalking for years, had been sold to a private group. T&N shares fell 3p to 156.5p yesterday.
The job cuts came in the wake of competition and "operational inefficiencies" in the group's pistons and brake linings businesses. The group has set aside pounds 15m to cover up to 1,500 redundancies in the current year and expects a further pounds 25m charge in its 1997 figures for what analysts forecast will be a further reduction of 1,000 in the workforce of more than 30,000.
Sir Colin Hope, chairman, said job cuts in the UK would be modest, with continental Europe, which has the biggest cost problem, bearing the brunt of the reduction.
Underlying operating margins at the group slid from 11 per cent to 9.1 per cent last year. Sir Colin said the objective was to get them above 10 per cent again. The headline pre-tax loss, which compares with profits of pounds 120m last time, was in line with expectations following T&N's decision to make a pounds 515m charge to draw a line under its long-running asbestos liabilities.
Sir Colin said he was "relaxed" about the sale of the Kolbenschmidt shares to Rheinmetall, a private automotive components business, despite the fact that they were held under option by Commerzbank on T&N's behalf until the end of December.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments