June 24, 2010 (FinancialWire) — Spartan Motors, Inc. (NASDAQ: SPAR) said it plans to exit its Road Rescue ambulance operation as part of a continuing review of all aspects of the company’s business.  

Spartan said the exit will allow it to focus its resources on the highest growth and profit opportunities.  The exit from the underperforming Road Rescue operation is scheduled to be completed by the end of 2010.  

The company said that the exit from Spartan's Road Rescue ambulance operation in Marion, South Carolina is part of a long-term strategic review initiated at the beginning of the year of all parts of the company's business. The actions are designed to focus Spartan's resources on those operations with the greatest potential for sustainable growth and profitability.

Spartan said it is in discussions with potential purchasers to facilitate a sale of the operations or facilities as part of the exit plan. According to Spartan, Road Rescue generated around $20 million in revenues in 2009 and it employs 132 full-time associates.  

Spartan also announced a number of actions to realign its cost structure.  These included a temporary reduction in board of directors' retainer fees, salary reductions for members of the executive leadership team and other senior leaders, some workforce reductions, and other actions as part of its continuing efforts to reduce fixed costs to better match its current level of business.

With the realignment actions and exit from Road Rescue, Spartan expects to incur pre-tax one-time charges of around $6 – $7 million, the majority of which will be recognized in the company's second and third quarter results.  Management expects these actions to reduce the company's permanent cost structure by $5 – $6 million on an annualized pre-tax basis.

Michigan-based Spartan Motors designs, engineers and manufactures specialty chassis, specialty vehicles and truck bodies and aftermarket parts for the Outdoor Recreation/RV, emergency-response, defense, government services, delivery and service markets.  

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