Itron has announced a plan to deliver $20 million to $25 million in annual savings from a global cost savings project, which includes continued execution towards its asset-light strategy.
This project will begin immediately and is scheduled to be substantially complete by the end of 2022.
Approximately 80% of the savings will improve gross margin with the remainder primarily focused on SG&A activities.
Itron estimates a pre-tax restructuring charge of $55 million to $65 million.
Of the total estimated charge, approximately $35 million to $45 million will result in cash expenditures, and the remainder relates to non-cash charges. The majority of the expense will be recognised in the third quarter of 2020.
Tom Deitrich, Itron‘s president and chief executive officer, said: “Itron continuously pursues ways to better utilize our talent, capital and infrastructure to more efficiently and effectively support our customers.
“With this cost savings project, we are taking an opportunity to further align our operations with our strategy to increase focus on higher-value solutions and optimize our supply chain. These actions will make Itron stronger and more resilient.”