Fuel Systems Solutions (FSYS) Reports In-Line Q4 EPS; Announces Restructuring Plan

Fuel Systems Solutions (NASDAQ: FSYS) reported Q4 EPS of ($0.20), in-line with the analyst estimate of ($0.20). Revenue for the quarter came in at $85.4 million versus the consensus estimate of $74.92 million.

Restructuring Plan

After a thorough evaluation of its operations, Fuel Systems Solutions has begun a plan of operational restructuring planned to be completed by year-end 2017. The elements of this plan include:

- Cost optimization – reduction of direct material costs through increased global sourcing and purchasing as well as centralized buying practices - Organizational optimization – additional right-sizing of the Company's workforce - Manufacturing footprint optimization – consolidation of certain manufacturing facilities, as well as consideration of alternative sales and distribution models in certain local markets

While final determinations of all specific actions have not yet been made, the Company believes it can realize, over three years, benefits totaling approximately $25.0 million less costs of approximately $10.0 million. Based upon the current timing of these initiatives, the Company anticipates a net increase in expenses in 2015, with the majority of benefits to be realized beginning in 2016. After the initial three year period the Company expects to enjoy annualized benefits of approximately $25.0 million.

For earnings history and earnings-related data on Fuel Systems Solutions (FSYS) click here.

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