Advanced Energy Announces Workforce Reduction
March 12 2009 - 4:22PM
PR Newswire (US)
FORT COLLINS, Colo., March 12 /PRNewswire-FirstCall/ -- Advanced
Energy Industries, Inc. (NASDAQ:AEIS) announced today a reduction
in workforce and other cost reductions, as we indicated on our
fourth quarter 2008 earnings call. In response to the deteriorating
economic conditions and weakening demand from the company's end
markets, the company is reducing its global workforce by
approximately 330 people or 22% of total headcount across all
functional areas and geographies and lowering the salaries of
management and executive officers by an additional 5%, totaling 15%
overall, effective April 1, 2009. "While we were hopeful that
conditions would begin to stabilize, the markets we serve have
nonetheless continued to deteriorate," said Dr. Hans Betz,
president and chief executive officer. "This has led us to take
additional cost reduction measures in order to streamline our
operations, and enable us to continue to focus on key market
opportunities." These cost reductions are expected to reduce salary
costs by approximately $8.2 million annually. Today's measures
along with other discretionary spending reductions, will result in
approximately $21 million of savings over the next three quarters,
and will lower the company's breakeven point to $55 million by the
end of the second quarter of 2009. Total restructuring charges,
including those from cost reductions announced in December, will be
approximately $3.8 million in the first quarter of 2009 and
approximately $800,000 in the second quarter of 2009. About
Advanced Energy Advanced Energy is a global leader in innovative
power and control technologies for high-growth, thin-film
manufacturing and solar power generation. Specifically, AE targets
solar grid-tie inverters, solar cells, semiconductors, flat panel
displays, data storage products, architectural glass and other
advanced applications. Certain statements contained herein are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements are subject to known and
unknown risks and uncertainties that could cause actual results to
differ materially from those expressed or implied by such
statements. Such risks and uncertainties include, but are not
limited to: the volatility and cyclicality of the industries the
company serves, particularly the semiconductor industry, the timing
of orders received from customers, the company's ability to realize
cost improvement benefits from the global operations initiatives
underway, and unanticipated changes to management's estimates,
reserves or allowances. These and other risks are described in
Advanced Energy's Form 10-K, Forms 10-Q and other reports and
statements filed with the Securities and Exchange Commission. These
reports and statements are available on the SEC's website at
http://www.sec.gov/. Copies may also be obtained from Advanced
Energy's website at http://www.advanced-energy.com/ or by
contacting Advanced Energy's investor relations at 970-407-6555.
Forward-looking statements are made and based on information
available to the company on the date of this press release. The
company assumes no obligation to update the information in this
press release.
http://www.newscom.com/cgi-bin/prnh/20030825/AEISLOGO
http://photoarchive.ap.org/ DATASOURCE: Advanced Energy Industries,
Inc. CONTACT: Lawrence D. Firestone, +1-970-407-6570, , or Annie
Leschin, or Vanessa Lehr, +1-970-407-6555, , all of Advanced Energy
Industries, Inc. Web Site: http://www.advanced-energy.com/
Copyright
Advanced Energy Industries (NASDAQ:AEIS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Advanced Energy Industries (NASDAQ:AEIS)
Historical Stock Chart
From Jul 2023 to Jul 2024