Interface announces third quarter restructuring charge
The restructuring charge is comprised of approximately $21 million of cash expenditures for severance benefits and relocation costs and approximately $39 million of non-cash charges, primarily for the write-down of the carrying value and disposal of certain impaired assets, including goodwill.
Excluding the restructuring charge, the company expects to generate third quarter earnings of $0.01 to $0.03 per share on revenues of approximately $255 million to $265 million.
Specifically, the non-recurring charge reflects the company's withdrawal from the European broadloom market; facilities consolidation in its raised and access flooring operations; further rationalization of the U.S. broadloom operations; worldwide workforce reduction of 850 employees; and the consolidation of certain non-strategic Re:Source dealer locations.
Interface Inc. is a worldwide commercial interiors products and services company.