Ann Arbor-based Tecumseh Products could make cuts after 2011 losses
The Ann Arbor based company Tecumseh Products, which makes compressors for refrigerators and air conditioners, experienced a tough 2011.
Yesterday, Crain's Detroit Business reported shares of Tecumseh "were at $3.93 late this morning, the lowest since their all-time low of $3.75 in March 2009."
The price ticked upward, and stands at $4.35 as of this posting.
Nathan Boomey of AnnArbor.com reports that there are concerns the company is too big, and that could mean layoffs for Tecumseh Products employees.
CEO Jim Conner said the company worked to reduce overhead and employee numbers in 2011, but "these actions alone were not sufficient to offset the lower sales, and additional restructuring actions may be necessary."
Connor...attributed the tough 2011 to "higher raw material costs, lower volumes and unfavorable changes in mix as a result of weak demand in the second half of the year." The company said sales of compressors for commercial refrigeration and aftermarket devices fell 5.4 percent. That segment accounts for 58 percent of its total sales. One positive sign for Tecumseh Products is sales increases in Latin America, where air conditioning is becoming more common in the home. Tecumseh Products had about 7,300 employees as of July.