Vishay Intertechnology Inc. filed SEC Form 8-K: Costs Associated with Exit or Disposal Activities, Financial Statements and Exhibits
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Electrical Products
Technology
UNITED STATES
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
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Item 2.05 – Costs Associated with Exit or Disposal Activities
On September 24, 2024, Vishay Intertechnology, Inc. (“Vishay” or the “Company”) announced that it is implementing restructuring actions
designed to optimize the Company’s manufacturing footprint and streamline business decision making as it executes its Vishay 3.0 growth strategy.
The restructuring actions will be implemented in phases and include:
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Selling, general, and administrative functions will be streamlined beginning immediately and through 4Q 2025, resulting in
severance payments to approximately 170 employees, or 6% of the SG&A workforce.
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The closure of three manufacturing facilities. A Diodes segment back-end facility in Shanghai, China is expected to be closed
by the end of 2026 with production transfers completed in phases beginning 4Q 2025. In addition, two small facilities in the Resistors segment in Fichtelberg, Germany, and in Milwaukee, Wisconsin, are expected to be closed in
2026. As a result of these facility closures, Vishay will reduce its direct labor by approximately 365 employees, or 2% of its total manufacturing labor workforce.
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Various changes in manufacturing operations and production transfers, which will result in severance payments to an additional
approximately 260 employees.
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The Company expects to incur pre-tax cash charges of approximately $38 to $42 million, primarily related to severance costs, as a result
of these programs, mostly in 3Q 2024. Once the program is fully implemented by the end of 2026, Vishay expects to realize annualized cost savings of at least $23 million of which approximately $12 million is expected to be in selling,
general and administration expenses. The Company expects to realize immediate annualized cost savings of approximately $9 million. Beginning 1Q 2025, the Company expects to realize approximately $12 million in annualized cost savings.
The estimates of expenses the Company expects to incur in connection with the restructuring actions, and the anticipated annual cost
savings resulting from such actions, represent its current best estimates, and are subject to a number of assumptions. Actual results may differ materially. Such estimates are preliminary and subject to change as the Company implements
these actions. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated with, the restructuring and the implementation of the Vishay 3.0 growth strategy.
The Company issued a press release regarding these programs, a copy of which is attached hereto as Exhibit 99.1 and is incorporated
herein by reference.
Item 9.01 – Financial Statements and Exhibits
(d) Exhibits
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Description |
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| 99.1 |
Press Release dated September 24, 2024 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document).
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Signature
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 hereunto duly authorized.
Date: September 24, 2024
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VISHAY INTERTECHNOLOGY, INC.
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By:
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/s/ David L. Tomlinson
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Name:
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David L. Tomlinson
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Title:
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Senior Vice President – Chief Accounting
Officer
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