December 6 (SeeNews) - US building products company Gibraltar Industries Inc (NASDAQ:ROCK) on Friday said it will exit its small European business that sells residential solar racking, along with its US bar grating product line.
Gibraltar chief executive Frank Heard said that negative market dynamics hinder the profitability of both product lines for the foreseeable future. The move is in line with the company's portfolio management strategy to focus resources on highest-return markets. It will see the closure of five facilities and 250 job losses over the next 120 days.
The changes will affect mainly the company's Industrial and Infrastructure Products segment. They are expected to reduce annual revenues by USD 75 million (EUR 70.2m), but increase operating profit by more than USD 6 million. The move is also expected to lead to after-tax charges of about USD 27 million, mainly non-cash write-downs in net asset values.
Gibraltar designs, manufactures and installs solar mounting systems for commercial and utility-scale projects under the RBI Solar brand. In 2014, RBI Solar acquired German photovoltaic (PV) mounting systems maker Renusol GmbH from insolvent Centrosolar.
(USD 1.0 = EUR 0.936)