Mueller Water Products Announces Strategic Reorganization and Restructuring to Drive Innovation, Accelerate Growth and Reduce...
September 07 2017 - 4:06PM
Projected Annual Cost Savings of Approximately $7
million from Restructuring
Mueller Water Products, Inc. (NYSE:MWA) today announced
its strategic reorganization plan designed to accelerate its
product innovation and revenue growth. The plan re-configures the
Company’s divisional structure around products, with five business
teams that have line and cross-functional responsibility for
managing distinct product portfolios. Under the new
organizational structure, engineering, operations, sales &
marketing and other functions will be centralized to better align
with business needs and generate greater efficiencies.
As a result of the restructuring and reorganization, the Company
expects cost reductions of approximately $7 million annually, which
includes headcount reduction and lower professional fees and other
expenses, and takes into account the hiring and alignment of new
administrative talent. The Company will begin to implement
the restructuring immediately, and the reorganization is expected
to be in place by October 1st. The Company will continue to
report its financial performance based on two reportable segments –
Infrastructure (previously identified as Mueller Co.) and
Technologies (previously reported as Mueller Technologies).
The components of these two segments have not changed.
“By restructuring the organization around value streams, we
intend to increase our customer focus, accelerate product
innovation and become more efficient,” said Scott Hall, President
and Chief Executive Officer of Mueller Water Products. “We
strongly believe that de-layering the organization with a new
emphasis on product lifecycle management and profitability will
streamline decision-making and promote collaboration throughout the
organization. With an even greater focus on our customers, we
will be well positioned to improve execution, obtain greater
efficiencies and achieve our planned business results.”
Key steps planned by the Company include:
- Reducing the Company’s salaried and management workforce
through an expected permanent elimination of approximately 35
full-time positions between now and the end of December. The
Company expects to incur about $11 million in restructuring charges
associated with the reorganization, which will include a charge in
the current quarter. The Company will provide additional
information regarding the current quarter charge once it becomes
available.
- Appointing four new general managers as part of the formation
of five value stream teams focused on driving profitability and
growth in the Company’s businesses. Dave Woollums will lead
the team responsible for Hydrants and Iron Gate Valves; Nick Peyton
will lead the team responsible for Specialty Valves; Chad Mize will
lead the Brass, Gas and Repair products team; and John DeYarman
will lead the team responsible for the Metrology business.
Marc Bracken will continue as General Manager of Echologics.
The value stream general managers will report into Keith Belknap,
who will lead Business Development.
- Centralizing key functions in Atlanta to better align with
business needs and generate greater efficiencies. Traditional
corporate functions such as HR, Legal, Compliance, Finance and
Accounting will be located in Atlanta as well as leadership for
Engineering, IT, Operations and EHS. As part of the new
structure, Greg Rogowski will lead Sales & Marketing for all of
Mueller Water Products.
Additionally, Evan Hart, Senior Vice President and Chief
Financial Officer, will retire as of December 31, 2017.
Commenting on Mr. Hart’s retirement, Mr. Hall said, "No one has
been more involved in shaping the strong financial position of
Mueller Water Products than Evan Hart. We are extremely
grateful to Evan for his significant contributions over the last
decade." Marietta Edmunds Zakas, who currently serves as
Senior Vice President, Strategy, Corporate Development, HR and
Communications, will take over as the Company's CFO immediately
following Mr. Hart’s retirement.
Scott Hall added, “I am excited about the new organizational
changes and importantly the team that will be in place. They
all possess a broad knowledge of our business, industry and
customers and are committed to delivering superior customer
service. Their leadership, capabilities and enthusiasm for our
business will all help to drive our future success.”
About Mueller Water Products
Mueller Water Products, Inc. is a pure play water products
company and a leading manufacturer and marketer of products and
services used in the transmission, distribution and measurement of
water in North America. Our broad product and service
portfolio includes engineered valves, fire hydrants, metering
products and systems, leak detection and pipe condition
assessment. We help municipalities increase operational
efficiencies, improve customer service and prioritize capital
spending, demonstrating why Mueller Water Products is Where
Intelligence Meets Infrastructure®. For more information
about Mueller Water Products, visit
www.muellerwaterproducts.com.
Forward-Looking Statements
This press release contains certain statements that may be
deemed “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. All
statements that address activities that may occur in the future are
forward-looking statements. The words “projected,”
“designed,” “will,” “expects,” “intend,” and other similar
expressions identify forward-looking statements. Examples of
such forward-looking statements include, but are not limited to,
statements we make regarding the expected benefits of the
restructuring, the timing and elements of the restructuring, the
expected annual cost reduction, the anticipated reduction in the
number of full-time employees, the hiring and alignment of new
administrative talent, our ability to achieve greater efficiencies
as a result of the restructuring and our expected restructuring
charge in the current quarter. Forward-looking statements are
based on certain assumptions and assessments made by us in light of
our experience, historical trends, current conditions and expected
future developments. Actual results and the timing of events
may differ materially from those contemplated by the
forward-looking statements due to a number of factors, including
the failure to realize the cost savings and efficiencies from the
restructuring within the time period currently expected (or at
all), the failure to streamline decision-making and promote
collaboration throughout our organization as anticipated, negative
impacts on our organization and/or relationships with customers
resulting from the restructuring (including the reduction in the
number of full-time employees), our inability to hire and retain
new talent as necessary, unexpected restructuring charges,
diversion of management’s attention from our ongoing business
operations and opportunities and other factors that are described
in the section entitled “RISK FACTORS” in Item 1A of our most
recently filed Annual Report on Form 10-K. Undue reliance
should not be placed on any forward-looking statements. We do
not have any intention or obligation to update forward-looking
statements, except as required by law.
Investor Contact: Martie Edmunds Zakas
Sr. Vice President – Strategy, Corporate Development & Communications
770-206-4237
mzakas@muellerwp.com
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