Menomonee Falls-based Magnetek Inc., a supplier of digital power and motion control systems, has provided an update on its 2014 guidance.
Magnetek said in an SEC filing Monday that it expects net income to be impacted by a non-cash pension settlement charge of $37.1 million, which would result in a $33 million to $33.5 million net loss from continuing operations.
The company offered a lump sum payout of pension benefits to 2,970 eligible deferred vested participants during 2014 in an effort to reduce the size, volatility, mortality risk and costs of its pension plan. 75 percent of participants opted for the lump sum payout, and $46.9 million was paid out of pension plan assets. As a result, Magnetek’s pension liability was reduced by the same amount, down to about $30 million net.
Magnetek expects revenue of $29 million for the fourth quarter of 2014, compared with its previously predicted range of $27 to $27.5 million.
