Adtran to close Greifswald facility within three months

In a regulatory filing, the company stated: “As ADTRAN previously reported in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 and Annual Report on Form 10-K for the year ended December 31, 2023, on November 6, 2023, the Company’s management resolved to implement a comprehensive business efficiency program which includes site consolidations. In connection with the Business Efficiency Program, management of the Company determined on April 11, 2024 to close the Company’s facility in Greifswald, Germany, within the next three months. The Company currently expects to incur total costs ranging from approximately $13.5 million to $18.4 million in connection with the closure of the facility. This includes cash charges ranging between approximately $13.3 million and $17.6 million in severance, outplacement and related expenses and a range of approximately $0.7 million to $1.3 million in lease exit costs, as well as non-cash charges of approximately $0.2 million in accelerated depreciation expenses. The Company expects these charges to be fully incurred in fiscal year 2024 with cash payments expected to span into 2025. The total estimated costs of the Business Efficiency Program are being adjusted accordingly. The Company does not currently anticipate incurring other charges or cash expenditures associated with the closure of the Facility. However, the Company will amend this disclosure in the event that there is a material change in costs or cash payments in connection with the closure of the Facility. The closure of the Facility will be substantially completed by June 30, 2024.”