The company will swallow a Q4 after-tax charge of between $7 and $10 million to account for the division restructuring, which will entail the disposal of excess footwear manufacturing equipment and inventory and raw material writedown. Oakley expects to consequently generate $3-$5 million in after-tax cash flow.

The O-visionaries have decided to reduce in-house investment in domestic shoemaking. The company’s footwear segment is projected to have a Q4 operating loss of $.01-$.02 in Q4. The more conventional plan will sharply reduce overhead and simultaneously ... Log in to view full article.