Furmanite (FRM) to Streamline European Operations; Sees $2.5M in Costs, $2.5M - $3M in Annual Savings
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Furmanite Corporation (NYSE: FRM) announced the expected timing, implementation expense and savings related to further restructuring of its European operations.
The Company is taking significant action to reduce administrative expense and streamline its European operations’ structure for improved efficiencies in the wake of the challenging economic conditions in the region. This action is expected to be fully defined within 30 days and substantially completed, with related expenses fully absorbed, in the second and third quarters of this year. The estimated restructuring costs of $2.5 million are expected to result in annualized savings of $2.5 million to $3.0 million. The restructuring action will not materially impact the Company’s 400 field service technicians within its EMEA region (which includes operations in Europe, the Middle East and Africa) or the Company’s continuing capability to serve its many customers across Europe.
“The previous major restructuring of European operations, completed in 2010, has simply proved to be inadequate for the serious economic uncertainties which continue to influence market conditions in this region. Given the magnitude of the macroeconomic challenges being addressed, we do not anticipate substantial near term market improvement. In light of this, we are making significant further adjustments to our structure to assure we are positioned to achieve profitable operations in Europe for the long term,” said Charles R. Cox, Chairman and Chief Executive Officer of Furmanite Corporation.
“As previously discussed on our first quarter earnings call in May, Europe continues to be the only area of our Global operations in which we have seen substantial weakness. All other regions continue to report stable to strong markets, and with the completion of this action in Europe, we anticipate ongoing profitable results for all regions,” concluded Cox.
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The Company is taking significant action to reduce administrative expense and streamline its European operations’ structure for improved efficiencies in the wake of the challenging economic conditions in the region. This action is expected to be fully defined within 30 days and substantially completed, with related expenses fully absorbed, in the second and third quarters of this year. The estimated restructuring costs of $2.5 million are expected to result in annualized savings of $2.5 million to $3.0 million. The restructuring action will not materially impact the Company’s 400 field service technicians within its EMEA region (which includes operations in Europe, the Middle East and Africa) or the Company’s continuing capability to serve its many customers across Europe.
“The previous major restructuring of European operations, completed in 2010, has simply proved to be inadequate for the serious economic uncertainties which continue to influence market conditions in this region. Given the magnitude of the macroeconomic challenges being addressed, we do not anticipate substantial near term market improvement. In light of this, we are making significant further adjustments to our structure to assure we are positioned to achieve profitable operations in Europe for the long term,” said Charles R. Cox, Chairman and Chief Executive Officer of Furmanite Corporation.
“As previously discussed on our first quarter earnings call in May, Europe continues to be the only area of our Global operations in which we have seen substantial weakness. All other regions continue to report stable to strong markets, and with the completion of this action in Europe, we anticipate ongoing profitable results for all regions,” concluded Cox.
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