Invacare Announces North America Reduction in Force as Part of Continued Cost Realignment
December 07 2017 - 5:24PM
Business Wire
Invacare Corporation (NYSE: IVC) today announced a reduction in
force in North America that is expected to generate approximately
$8.5 million in annualized pre-tax savings.
The company has been executing a multi-year strategic
transformation of its overall approach to quality, product mix,
commercial execution, supply chain and engineering. These changes
apply globally, although the efforts to drive change have been most
intensely focused in North America. Part of this strategy has been
to diminish sales of less clinically valuable products and to focus
on solutions that provide the greatest benefits to end-users and
providers. For the third quarter ended September 30, 2017, the
company reported a positive turn in constant currency sequential
net sales growth in the North America/Home Medical Equipment
(NA/HME) segment following several quarters of transformation work.
The reduction in force is expected to align selling, general and
administrative expense with the company's new mix of business.
“Invacare is making good progress in its North America
transformation. This reduction in force, while difficult, is an
essential part of the second phase of our transformation toward
becoming a more sustainably profitable, growing business," said
Matthew E. Monaghan, chairman, president and chief executive
officer. "We are realigning our North America infrastructure with
our new sales levels and finding more efficient ways to do
business. Through this action, we are empowering employees to drive
simplification and enhance customer engagement. We expect the
result to lead to improved cost-effectiveness as we pursue
growth.”
The reduction will impact approximately 110 associates across
the company’s North America segments. Customary transition
assistance will be provided to affected employees.
Due to the reduction in force, the company expects to incur
total restructuring charges in the fourth quarter 2017 of
approximately $2.6 million on a pre-tax basis, principally in the
NA/HME segment and to a lesser extent in the Institutional Products
Group segment.
"Constant currency sequential net sales" is a non-GAAP financial
measure in which a quarter’s net sales are compared to the most
recent prior quarter's net sales with each quarter's net sales
translated at the foreign exchange rates for the quarter ended
March 31, 2017.
About Invacare Corporation
Invacare Corporation (NYSE: IVC) ("Invacare" or the "company")
is a leading manufacturer and distributor in its markets for
medical equipment used in non-acute care settings. At its core, the
company designs, manufactures, and distributes medical devices that
help people to move, breathe, rest and perform essential hygiene.
The company provides clinically complex medical device solutions
for congenital (e.g., cerebral palsy, muscular dystrophy, spina
bifida), acquired (e.g., stroke, spinal cord injury, traumatic
brain injury, post-acute recovery, pressure ulcers) and
degenerative (e.g., ALS, multiple sclerosis, chronic obstructive
pulmonary disease, elderly, bariatric) ailments. The company's
products are important parts of care for people with a wide range
of challenges, from those who are active and involved in work or
school each day and may need additional mobility or respiratory
support, to those who are cared for in residential care settings,
at home and in rehabilitation centers. The company sells its
products principally to home medical equipment providers with
retail and e-commerce channels, residential care operators,
distributors and government health services in North America,
Europe and Asia/Pacific. For more information about the company and
its products, visit Invacare's website at www.invacare.com.
This press release contains forward-looking statements within
the meaning of the “Safe Harbor” provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are those that describe future outcomes or expectations
that are usually identified by words such as “will,” “should,”
“could,” “plan,” “intend,” “expect,” “continue,” “forecast,”
“believe,” and “anticipate” and include, for example, any statement
made regarding the company's future results. Actual results may
differ materially as a result of various risks and uncertainties,
including regulatory proceedings or the company's failure to comply
with regulatory requirements or receive regulatory clearance or
approval for the company's products or operations; circumstances or
developments that may make the company unable to implement or
realize the anticipated benefits, or that may increase the costs,
of its current business initiatives, including the reduction in
force; possible adverse effects on the company’s liquidity that may
result from delays in the implementation or realization of benefits
from its current business initiatives; exchange rate fluctuations;
and those other risks and uncertainties expressed in the cautionary
statements and risk factors in the company’s annual report on Form
10-K, quarterly reports on Form 10-Q and other filings with the
Securities and Exchange Commission. The company may not be able to
predict and may have little or no control over many factors or
events that may influence its future results and, except as
required by law, shall have no obligation to update any
forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20171207006278/en/
Invacare CorporationLara Mahoney, 440-329-6393
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