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Exhibit 99
DELCO REMY INTERNATIONAL ANNOUNCES REALIGNMENT ACTIONS TO REDUCE OPERATING COSTS
ANDERSON, IND., JULY 27, 2000/PR Newswire/ -- Delco Remy International,
Inc. (NYSE:RMY), announced today that it is completing a realignment of its
global manufacturing facilities. These actions will affect units in the United
States, Canada, and the United Kingdom.
As a result, the Company will record a one-time pretax charge of
approximately $35 million ($22 million after tax or $.84 per share) in the
fourth quarter. The future after tax cash outlay will be approximately $10
million over the next two years. The main component of the charge will be
voluntary and involuntary employee separation programs related to the
rationalization of manufacturing operations.
The Company expects that these actions will result in a reduction in
operating costs of $20 million annually or $.48 per share. These benefits will
begin to be realized in fiscal year 2001 and be fully realized in fiscal year
2002.
Delco Remy International, Inc., headquartered in Anderson, Indiana
(USA), became a public company in 1997. The Company designs, manufactures,
remanufactures and distributes electrical, powertrain/drivetrain and related
components and provides core exchange services for automobiles and light trucks,
medium- and heavy-duty trucks and other heavy-duty and industrial applications.
Products include starter motors, alternators, engines, transmissions, torque
converters, fuel systems and traction control systems. The Company serves the
aftermarket and original equipment manufacturer market, principally in North
America, as well as Europe, Latin America and Asia Pacific. More information is
available on the Company web site at http://www.delcoremy.com
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Statements in this press announcement, which are not historical fact, are
forward-looking statements that involve certain risks and uncertainties
including, but not limited to risks associated with the uncertainty of future
financial results, acquisitions, additional financing requirements, development
of new products and services, the effect of competitive products on pricing, the
effect of economic conditions and other uncertainties detailed in the Company's
filings with the Securities and Exchange Commission.
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Investor Relations: J. Timothy Gargaro 765-778-6660
David E. Stoll 765-778-6523
Media Relations: John J. Pyzik 765-778-6607
Delco Remy Web site: http:/www.delcoremy.com
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