The four business units of Genuine Parts Co. – Automotive, Electronics, Industrial and Office Products – have drafted detailed and specific cost reduction plans, which each have implemented, according to Thomas Gallagher, CEO, in the company’s latest conference call on its first quarter 2009 results.
But as we saw the business decelerating even more in Industrial and Electrical, they had built contingency plans to take more costs out, which they have been working on, and they continue to refine the contingency planning to try to catch up with the declining revenue, he said.
But the company is cautious of not cutting too much. “It’s a balancing act,” says CFO Jerry Nix. “We don’t want to go so far that …
Genuine Parts Company: Cost Cuts a ‘Balancing Act’
The four business units of Genuine Parts Co. – Automotive, Electronics, Industrial and Office Products – have drafted detailed and specific cost reduction plans, which each have implemented, according to Thomas Gallagher, CEO, in the company’s latest conference call on its first quarter 2009 results.
But as we saw the business decelerating even more in Industrial and Electrical, they had built contingency plans to take more costs out, which they have been working on, and they continue to refine the contingency planning to try to catch up with the declining revenue, he said.
But the company is cautious of not cutting too much. “It’s a balancing act,” says CFO Jerry Nix. “We don’t want to go so far that …
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About the Author
Lindsay Young
Lindsay Young is the president of 3 Aspens Media, a B2B content strategy and marketing content firm that works with distributors to translate their offline expertise – online. She has more than 20 years of experience leading and producing online and print content for publications and businesses. She leads a team of 12 writers, client success managers, designers, marketing specialists and strategists to produce content that helps companies translate their benefits to key decision-makers. She was previously the editor of Modern Distribution Management.
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