IDEX Corporation to Take Restructuring Charge in First Quarter; Earnings Before Charge Remain on Track
NORTHBROOK, Ill., April 5 -- IDEX Corporation (NYSE: IEX) today announced that diluted earnings per share before restructuring charges for the first quarter are on track with earlier estimates of 32 to 37 cents.
In addition, the company has decided to take aggressive actions to properly
size its operations with current business conditions. As a result, it will
record a $5.5 million restructuring charge, or 11 cents per share, in the
first quarter. This restructuring -- which affects all three business
groups -- will result in a workforce reduction of approximately 250 employees
(or 6 percent of the total workforce) and the consolidation of two Pump
Products Group manufacturing plants into a single more efficient operation.
Chairman, President and Chief Executive Officer Dennis K. Williams said,
"The reduced demand in the U.S. manufacturing sector continues to affect sales
volumes and profitability in our base businesses. Last year, we introduced
three key initiatives -- global sourcing, E-Business and Six Sigma -- that we
believe will help us improve margins starting in the third quarter of 2001,
continuing into 2002 and beyond. In addition, we continue to drive top-line
growth in new market niches and to make acquisitions that meet our strict
criteria. While all of these efforts will improve our longer term
performance, we believe the current actions are necessary to appropriately
size our businesses, lower costs and improve efficiencies. For example, the
decision to consolidate two of Gast Manufacturing's southwest Michigan
production facilities addresses excess capacity issues that have resulted from
the combination of lower current demand and improving process efficiencies
that have been realized at this business. We expect the annualized savings
from these actions will exceed the charge taken in this quarter."
IDEX Corporation is a manufacturer of proprietary pump products,
dispensing equipment, and other engineered products with leading positions in
niche markets. Its products are sold to a wide range of industries throughout
the world. IDEX shares are traded on the New York Stock Exchange and Chicago
Stock Exchange under the symbol IEX.
Source: IDEX Corporation