SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 8, 1997
AMP Incorporated
(Exact name of registrant as specified in its charter)
Pennsylvania 1-4235 23-0332575
(State of Incorporation) (Commission (IRS Employer
File Number) Identification Number)
PO Box 3608 17105-3608
Harrisburg, Pennsylvania (Zip Code)
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (717) 564-0100
ITEM 5. Other Events.
On December 31, 1996, AMP Incorporated, a Pennsylvania corporation (the
"Company") announced in a press release that the Board of Directors approved the
Company's plans to rationalize certain of its operations and product lines and
to take corresponding restructuring and other one-time charges in the fourth
quarter of 1996 in the total amount of $195 million. In a subsequent press
release issued on January 8, 1997, the Company announced further details on
those streamlining plans.
Pursuant to General Instruction F of Form 8-K, the Company hereby
incorporates herein by reference the press releases that are attached hereto as
Exhibits 99.A and 99.B.
ITEM 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits
99.A Press release issued by AMP Incorporated on December 31, 1996.
99.B Press release issued by AMP Incorporated on January 8, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this current report to be signed on its behalf by the
undersigned hereunto duly authorized.
AMP Incorporated
By: /s/ J. E. Marley
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James E. Marley
Chairman
Date: January 8, 1997
EXHIBIT INDEX
Exhibit Number Description Page
99.A Press release issued by AMP Incorporated on
December 31, 1996.
99.B Press release issued by AMP Incorporated on
January 8, 1997.
AMP EXECUTIVE OFFICES
NEWS RELEASE
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AMP INCORPORATED HARRISBURG PA 17105 717-564-0100 NYSE SYMBOL:AMP
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IMMEDIATE RELEASE RELEASE NO: 96-9
DECEMBER 31, 1996 FOR MORE INFORMATION CONTACT: WILLIAM OAKLAND
(717) 592-6371
AMP ANNOUNCES RESTRUCTURING AND ONE-TIME CHARGES IN FOURTH QUARTER
Harrisburg, PA - Today (Tuesday, December 31, 1996) the AMP Board of Directors
approved a restructuring and other one-time charges of $195 million to be taken
in the fourth quarter. In a December 12, 1996 news release the Company stated it
would take fourth quarter charges, but did not indicate the amount. These
charges are being taken to rationalize certain of AMP's businesses and are
mostly non-cash in nature.
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Harrisburg, Pennsylvania-based AMP Incorporated is the world's leading producer
of electrical/electronic connection devices. It has nearly 45,000 employees in
215 facilities in the U.S. and 44 other countries. AMP stock is listed on the
New York, Pacific and other regional stock exchanges (Symbol -- "AMP").
news from
AMP
AMP Incorporated
P.O. Box 3608
Harrisburg, PA 17105-3608
FOR RELEASE: January 8, 1997
Media Contact: Thea Hocker, Manager-Media Relations
717-592-2314
Investor Contact: William Oakland, Director-Investor Relations
717-592-6371
AMP STREAMLINES SELECTED BUSINESSES
HARRISBURG, PA, JANUARY 8, 1997 - AMP Incorporated (NYSE:AMP), the world's
leading supplier of electrical and electronic connectors and interconnection
systems, today announced details of plans to rationalize and streamline parts of
the business, to be implemented throughout 1997. This announcement follows the
company's disclosure on December 31, 1996 of a restructuring and one-time charge
of $195 million to be taken in the fourth quarter 1996.
"We have three reasons for taking this action," said AMP CEO and President
William J. Hudson. "The first reason is to eliminate and streamline certain
product lines and under-performing operations. Second, we need to improve
profitability and strengthen the business to better serve our customers. The
final reason is to create additional profits to build an even stronger global
business and competitive U.S. manufacturing base."
Hudson emphasized that "we are not downsizing our business nor are we targeting
jobs to save money. Infact, most of the streamlined businesses are not
labor-intensive and only a small percentage of the restructuring charge will
come from workforce reductions. Rather, our focus is on discontinuing
under-performing product lines and realigning manufacturing operations,
primarily in AMP's Americas operation."
Highlights of the plan:
* The company will significantly reduce its presence in the market for
military cylindrical pin and socket connectors. This will result in the
closing of a plant in California and a reduction in employment in
Pennsylvania and several international locations.
* AMP's CIR-PAC unit will move out of certain aspects of the printed wiring
board business and will focus its resources on manufacturing
higher-technology boards for the communications, industrial and computer
markets. Consequently, the Riverhead, NY, facility will be phased out over
the next two quarters and some assets will be consolidated into the
Greenville, South Carolina facility.
* AMP's Global Interconnect Systems Business unit will write down certain
equity investments and eliminate older generation Connectware products.
Cost reduction actions also will be taken at several locations.
* As part of AMP's manufacturing integration strategy, it will close or
consolidate several specialized facilities in the U.S., including plants in
Roanoke, VA and McSherrystown, PA.
Hudson added, "These actions will improve our profit margins and enhance our
competitiveness. Unfortunately, they could also negatively affect about 1000
jobs worldwide. Over the next several weeks, we will be informing employees,
customers, and suppliers of these decisions. Additional details will be included
in the company's January 22, 1997 release on fourth quarter results."
Hudson concluded, "We remain confident in our long-term strategy of maintaining
leadership in connection devices, diversification, and geographic expansion. By
taking action now to improve profitability and cash flow, we can more quickly
build a stronger, more secure foundation for future growth for AMP, its
investors, and employees."
AMP is headquartered in Harrisburg, PA and employs nearly 45,000 in Asia, Europe
and the Americas, serving customers in markets that include communications,
networking, industrial, consumer goods, aerospace and automotive. AMP had sales
of $5.2 billion in 1995.
