Baldwin Announces Strategic Actions to Optimize Performance
April 05 2011 - 9:29AM
Business Wire
Baldwin Technology Company, Inc. (NYSE Amex: BLD), a global
leader in process automation technology for the printing industry,
today announced a strategic reorganization of the Company’s
operations in Europe and a 9% reduction in global employment
levels.
The Company estimates that the total cost of implementing this
Q3 FY2011 restructuring plan will be approximately $2.4 million and
will result in an annual savings of approximately $5 million.
Coupled with actions taken earlier in the current fiscal year, the
total impact of all restructurings is expected to result in savings
of over $6.6 million annually.
As part of the above described plan, the Company will exit
facilities in Egelsbach, Germany and Tranas, Sweden and consolidate
engineering and production into existing Baldwin operations in
Germany and the U.K. Baldwin will reorganize its sales and service
structure in Southeast Asia, and the Company’s Japan sales office
will move to more efficient space in Tokyo.
Additionally, the Company announced the planned exit of its U.S.
food blending and packaging business. The Company will classify its
non-core food blending and packaging business (which currently
represents approximately 3% of total annual revenues) as
discontinued operations, which will result in a charge during the
third quarter primarily related to the impairment of goodwill and
other intangible assets associated with that business in the amount
of approximately $2.5 million. During the fiscal fourth quarter
ending June 30, 2011, the Company expects to incur an additional $3
million facility related charge and minor costs to reduce
employment at its food blends operation.
Baldwin President and CEO Mark T. Becker said “Our management
team has been working for several months on a strategic plan to
better leverage our global platform and optimize our performance,
with a goal of enhancing shareholder value. The facilities
consolidation will lower our cost structure and improve our ability
to service Baldwin’s global customers. The headcount reduction
right-sizes our employment costs for current sales levels and
further growth expected in 2012. Finally, the toll-manufacturing
food business acquired in 2006 as part of our purchase of the
Oxy-Dry group of companies did not have the scale or structure to
be competitive and risks diverting cash from core growth
businesses. By exiting this business we will be able to focus our
resources on profitable growth as part of our commitment to be an
industry leader in equipment, consumables, parts and service for
print media customers.”
The Company will provide additional details on the restructuring
and discontinued operations in its third quarter earnings release
and conference call with investors scheduled for May 10th.
About Baldwin
Baldwin Technology Company, Inc. is a leading international
supplier of process automation equipment and related consumables
for the printing, publishing and packaging industries. Baldwin
offers its customers a broad range of market-leading technologies,
products and systems that enhance the quality of printed products
and improve the economic and environmental efficiency of the
printing process. Headquartered in Shelton, Connecticut, the
Company has operations strategically located in the major print
media markets and distributes its products via a global sales and
service infrastructure. Baldwin’s technology and products include
cleaning systems, fluid management and ink control systems, web
press protection systems and drying and curing systems and related
consumables. For more information, visit
http://www.baldwintech.com. A profile for investors is available at
www.hawkassociates.com/profile/bld.cfm. An online investor kit
including press releases, current price quotes, stock charts and
other valuable information for investors is available at
http://www.hawkassociates.com. To receive free e-mail notification
of future releases for Baldwin, sign up at
www.hawkassociates.com/about/alert/.
Cautionary Statement
Certain statements contained in this News Release constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
regarding asset impairments, expectations concerning the reductions
of costs, and the ability of the Company to achieve its stated
objectives. Such forward-looking statements involve a number of
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such factors include, but are not
limited to: the severity and length of the current economic
downturn, the impact of the economic downturn on the availability
of credit for the Company's customers, the ability of the Company
to maintain ongoing compliance with the terms of its amended credit
agreement, market acceptance of and demand for the Company's
products and resulting revenue, the ability of the Company to meet
its stated financial and operational objectives, the Company's
dependence on its partners (both manufacturing and distribution),
and other risks and uncertainties detailed in the Company's
periodic filings with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date the
statement was made. The Company undertakes no obligation to update
any forward-looking statements contained in this news release.
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