Albany Molecular (AMRI) Announces Workforce Reduction, to Cease Facility Lease; Updates on Expected Charges
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Price: $21.74 --0%
Financial Fact:
Total operating expenses: 168.4M
Today's EPS Names:
NLY, CP, RUSHA, More
Financial Fact:
Total operating expenses: 168.4M
Today's EPS Names:
NLY, CP, RUSHA, More
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On December 20, 2011, Albany Molecular Research, Inc. (Nasdaq: AMRI) approved a restructuring plan which includes actions taken in the fourth quarter of 2011 to reduce the Company's workforce, right size capacity, and reduce operating costs in 2012. These actions will better align the business to current and expected market conditions and are expected to improve the Company's overall cost competitiveness and increase cash flow generation.
The workforce reduction primarily affects personnel based in the Company’s U.S. operations and includes certain positions associated with the Company’s previously announced elimination of all internal R&D activities. As a result of the workforce reduction, the Company will be terminating the lease of one of its U.S. facilities which will result in a reduction in annual operating expenses related to this facility. The Company expects that these cost reduction initiatives will result in annual savings of approximately $10 - $11 million, including $7 million relating to the previously announced cessation of R&D activities and that these savings will begin to be recognized in the first quarter of 2012.
In connection with the actions, the Company expects to incur pre-tax charges of approximately $5.0-$5.5 million for lease termination costs and approximately $0.5 million for employee related costs. Lease termination costs primarily consists of a non-cash charge to write-off fixed assets in association with the Company’s plans to consolidate operations. The Company expects these charges to be recorded in the fourth quarter of 2011.
The workforce reduction primarily affects personnel based in the Company’s U.S. operations and includes certain positions associated with the Company’s previously announced elimination of all internal R&D activities. As a result of the workforce reduction, the Company will be terminating the lease of one of its U.S. facilities which will result in a reduction in annual operating expenses related to this facility. The Company expects that these cost reduction initiatives will result in annual savings of approximately $10 - $11 million, including $7 million relating to the previously announced cessation of R&D activities and that these savings will begin to be recognized in the first quarter of 2012.
In connection with the actions, the Company expects to incur pre-tax charges of approximately $5.0-$5.5 million for lease termination costs and approximately $0.5 million for employee related costs. Lease termination costs primarily consists of a non-cash charge to write-off fixed assets in association with the Company’s plans to consolidate operations. The Company expects these charges to be recorded in the fourth quarter of 2011.
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