Collins & Aikman Corp. is cutting employment and costs, changing management and considering closing some of the 12 plants blamed for a significant chunk of the interior trim and convertible top supplier's first-quarter net loss of $28.7 million.
"C&A's management team is extremely disappointed and embarrassed and will defer any other initiatives until these (operations) are fixed," said President Jerry Mosingo Thursday, May 15, during a conference call with analysts.
The company, in the midst of an overhaul to improve performance and return to profitability after a two-year buying binge, had good results at the bulk of its facilities, Mosingo said, but the troubled plants are dragging down the supplier.
"We got hit hard by the bottom 10 percent tail of our manufacturing," Mosingo said.
Collins & Aikman posted a $28.7 million net loss on sales of $1.03 billion, compared with a $6.7 million net loss on sales of $914 million a year earlier.
The company ranked No. 12 on Automotive News' list of top 150 original equipment suppliers to North America, with original equipment sales of $3.14 billion in 2002.