The Mersen group, specializing in electrical equipment and graphite components, will cut 130 jobs in France. Since the start of the year, the group has cut 300 jobs worldwide out of a total of 6,375 people.
The savings plan providing for 130 job cuts announced by the Mersen group (formerly Carbone Lorraine) on Tuesday did not convince the Stock Exchange. At the close on Wednesday evening, the title of the manufacturer of graphite equipment Mersen fell significantly (-4.65% to 16.21 euros). “The impact on 2016 net income will of course be strongly negative insofar as we estimate that 80% of the 35 million euros in non-recurring costs could occur this year,” commented broker Gilbert Dupont. Expensive at the start, this transformation plan should offer additional leverage from 2018 ”.
In the first half, the company achieved a turnover of 389 million (-1%) and a net profit of 12.3 million against 16.7 million for the first six months of last year. Mersen has also decided to initiate discussions with a view to selling its high power disconnector activity at the Saint-Loup-de-Naud site (France). The group confirmed its objectives for the year 2016, namely a turnover for the year of the same order of magnitude as that of 2015 at comparable structure and exchange rates and a current operating margin of around 7.5% of turnover. business.
“Operational excellence plan”
The measures, grouped together in a so-called “operational excellence” plan should allow savings of 40 to 45 million euros by 2018. These measures affect the sites of Pagny-sur-Moselle (Meurthe et Moselle) devoted to chemicals (50 jobs eliminated out of 230) and that of Saint-Bonnet-de-Mure (Rhône) specializing in power electricity (80 jobs eliminated out of 410).
For Luc Thémelin, CEO of the group quoted in a press release, “this new step, the social impact of which the group is measuring, is necessary to enable Mersen to make the most of the potential of its growth markets and to make it more solid. “. In total, specifies the Mersen group, the plan will concern 300 jobs. The first part of the job cuts, announced in March, only concerned foreign sites. At the end of 2015, according to figures provided by the company, Mersen had 6,375 people worldwide and 1,472 jobs in France spread over nine industrial sites and the head office.