Douglas Dynamics implements 2024 Cost Savings Program

The recently implemented 2024 Cost Savings Program, which is primarily in the form of salaried headcount reductions, impacted both the Work Truck Attachments segment and corporate functions. The structural changes are anticipated to yield annual pre-tax savings of $8 million to $10 million, with approximately 75% of the anticipated annualized savings expected to be realized in 2024. The implementation of these initiatives is expected to lead to approximately $2 million in pre-tax restructuring charges related to workforce reduction costs and other related expenses. We expect to incur these charges primarily in the first quarter of 2024, and Adjusted EBITDA will be adjusted for any items affecting comparability. McCormick explained, “While our business model is designed to adapt quickly to temporary weather driven challenges, the historic low snowfall trends seen in the past few years has led us to look beyond our typical cost cutting measures. While we expect to unlock significant savings from the initiatives, we remain equally confident in protecting and growing our competitive advantages, which leaves us well positioned to drive growth over the medium- to long-term.”