Itron, the leader in innovating the way utilities and cities manage energy and water, announced a plan to deliver $20 million to $25 million in annual savings from a global cost savings project, that includes continued execution towards its asset light strategy.
“Itron continuously pursues ways to better utilize our talent, capital and infrastructure to more efficiently and effectively support our customers,” said Tom Deitrich, Itron’s president and chief executive officer. “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.”
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. The Company 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 recognized in the third quarter of 2020.
