EnPro to Halt Brake Drum Manufacturing, Take $15.4 Million Charge

1/13/19

By Nicholas Thompson, NCBIZNews

EnPro Industries Inc. announced Friday that a restructuring plan means it will discontinue the production of brake drum friction by its STEMCO heavy-duty trucking business, according to a Securities and Exchange Commission filing.

The company expects a non-cash charge of $15.4 million in expenses, comprised primarily of the impairment of inventory, equipment and other assets. These charges have been recognized in the fourth quarter of 2018.

The restructuring plan also involves the shutdown of production lines in its STEMCO owned manufacturing facility in Rome, Georgia.

EnPro Industries will continue to offer a full range of brake shoes, manufactured by approved suppliers held to STEMCO’s quality standards.

EnPro specializes in sealing technologies, metal polymer and filament wound bearings, components and service for reciprocating compressors, along with diesel and dual-fuel engines. EnPro operates facilities in North and South America, Europe and Asia, and markets to over 50,000 customers in 100 countries worldwide.

EnPro plans to announce full-year results on Feb. 13, and the results are expected to align with its October guidance. Its shares closed Friday at $63.69, down 10 cents.

The filing can be found here.

Recent Deals

Interested in advertising your deals? Contact Edwin Warfield.