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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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): March 27, 2001
OXFORD AUTOMOTIVE, INC.
(Exact name of Registrant as specified in its charter)
Michigan 333-75849 38-3262809
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
1250 Stephenson Highway
Troy, Michigan 48083
(Address of principal executive offices)
Registrant's telephone number, including area code: (248) 577-1400
N/A
(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS
On March 30, 2001, Oxford Automotive, Inc, headquartered in Troy, Michigan, a
leading full-service automotive supplier of high quality engineered metal
components, assemblies and modules announced that it will close plants,
eliminate jobs and take a one-time after tax restructuring charge of
approximately $43 million ($71 million pre-tax). Approximately $37 million of
the charge will be recorded in its fourth quarter of fiscal ended March 31,
2001, with the balance to be reflected in the first two quarters of fiscal year
ended March 31, 2002.
This capacity rationalization action anticipates the closure of four North
American plants and will result in the elimination of up to 500 jobs of the
North American salaried and hourly workforce. These actions will reduce excess
capacity and result in the transfer of substantially all of the products
manufactured in the closed facilities to other Oxford Automotive facilities.
In accordance with the Company's ongoing assessment of global market
opportunities this action represents a strategic repositioning of available
production capacity. The decision to close these facilities reflects the
Company's response to changing global market conditions, especially in North
America for the Company's key product lines. The recent decline in North
American vehicle production has accelerated the implementation of the strategic
realignment of production capacity.
Oxford should benefit from a lower fixed cost structure resulting in annual
pre-tax fixed cost savings of approximately $19 million. Oxford expects that the
capacity rationalization action will result in net cash charges of approximately
$13 million during the fiscal year ending March 31, 2002. The rationalization
charge includes a $35 million write-down of the net book value of excess,
obsolete and non-core assets. The plan anticipates the recovery of the net
realizable value of these assets in excess of $40 million by the end of fiscal
year 2003.
As of March 30, 2001, the Company is in the process of obtaining a waiver under
its revolving line of credit for the quarter ended March 31, 2001, relating to
certain requirements to maintain maximum total debt to EBITDA and minimum
interest coverage to EBITDA.
The Company will host a conference call on April 2, 2001 at 10:00 a.m. EST with
slides available on Bloomberg at SSRD <GO>, under option 2) Fixed Income <GO>.
The dial in number is 888-273-9886 domestic or 612-332-0718 international. A
replay of this recording will be available from 4:30 p.m. EST on April 2 through
April 9 and on Bloomberg. To access this recording, dial 1-800-475-6701 domestic
or 320-365-3844 international, and enter access code 579886 or on Bloomberg per
above instructions.
FORWARD-LOOKING STATEMENTS
This report contains statements relating to such matters as anticipated
financial performance, business prospects and other matters that may be
construed as forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. In addition, the Company may from
time to time publish or communicate other statements that could also be
construed to be forward-looking statements. These statements are, or will be,
based on the Company's estimates, assumptions and projections, and are subject
to risks and uncertainties, including those specifically listed below, that
could cause actual results to differ materially from those included in the
forward-looking statements.
The risks and uncertainties that may affect the operations, performance,
development and results of operations of the Company include the following: (1)
the original equipment manufacturer ("OEM") supplier industry is highly cyclical
and, in large part, impacted by the strength of the economy generally, by
prevailing interest rates and by other factors which may have an effect on the
level of sales of automotive vehicles; (2) future price reductions, increased
quality standards or
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additional engineering capabilities may be required by the OEMs, which are able
to exert considerable pressure on their suppliers; (3) the OEMs may decide to
in-source some of the work currently performed by the Company; (4) work
stoppages and slowdowns may be experienced by OEMs and their Tier 1 suppliers,
as a result of labor disputes; (5) there may be a significant decrease in sales
of vehicles using the Company's products or the loss by the Company of the right
to supply any of such products to its major customers; (6)increased competition
could arise in the OEM supplier industry; (7) changing federal, state, local and
foreign laws, regulations and ordinances relating to environmental matters could
affect the Company's operations; and (8) there may be unfavorable currency
exchange rates relative to the U.S. dollar, which could impact the Company's
operations.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
OXFORD AUTOMOTIVE, INC.
/s/ Aurelian Bukatko
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Aurelian Bukatko,
Executive Vice President and Chief Financial Officer
Dated: March 30, 2001