In order to increase operational efficiency and drive annualized cost savings
Symmetry Medical has initiated a restructuring process that includes a facility consolidation and other staff reductions, designed to increase operational efficiency and drive annualised cost savings.
As part of the restructuring, the company will consolidate its Auburn, ME operations into other existing Symmetry Medical facilities by the middle of 2010. The consolidation will include the transfer of current production capacity, including equipment and machinery. The company is taking steps to minimize any disruptions and expects to provide a high level of quality and service to its customers during the consolidation.
The restructuring, once complete, is expected to generate an ongoing annualized cost savings of approximately $3.4m, on a pre-tax basis. The total one-time cost of these actions is anticipated to be in the range of $2.4 to $2.8m, said the company.
The company claims that as a result of these actions, it will incur a fourth quarter 2009 restructuring charge of between $1.8m and $2.2m, on a pre-tax basis, consisting of primarily of severance costs and impairment of property, plant and equipment.
In addition to the restructuring charges, the company is currently evaluating long-lived intangible assets including goodwill related to the Auburn, ME operations, which were acquired in May 2006, for potential impairment. The company will communicate any required non-cash charges related to these assets when the analysis is completed.