VPG Announces Global Restructuring and Cost Reduction Plan
November 16 2015 - 7:30AM
Business Wire
Company to take
definitive action to improve overall efficiency and reduce costs,
resulting in $6.0 million of expected savings
Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of
precision sensors and systems, today announced restructuring and
cost reduction actions that are expected to improve overall
efficiency by lower operating costs by approximately $6.0 million
annually, beginning in 2016. The cost reduction steps have already
begun and reflect recent market conditions.
Ziv Shoshani, VPG’s chief executive officer said, “We have begun
implementing our restructuring and cost reduction plan, which
should result in a cash restructuring charge of approximately $4.0
million which will impact, primarily, the fourth fiscal quarter of
2015.”
Key elements of the plan include:
- The cost reductions are expected to
come from lower manufacturing costs, including savings from a force
sensor facility closure in Asia in the second quarter of 2016, with
continued production consolidation into VPG’s facility in
India.
- Consolidation and streamlining of
certain product lines in the Foil Technology Product and Force
Sensors segments, and additional workforce reductions in the
Weighing and Control Systems segment.
Mr. Shoshani added, “While we have taken action in response to
macro-economic challenges, we remain focused on strategy execution
to drive positive operational and financial results, and to
building a stronger future for the company.”
About VPG
Vishay Precision Group, Inc. (VPG) is an internationally
recognized designer, manufacturer and marketer of: components based
on its resistive foil technology; sensors; and sensor-based systems
specializing in the growing markets of stress, force, weight,
pressure, and current measurements. VPG is a market leader of foil
technology products, providing ongoing technology innovations in
precision foil resistors and foil strain gages, which are the
foundation of the company's force sensors products and its weighing
and control systems. The product portfolio consists of a variety of
well-established brand names recognized for precision and quality
in the marketplace. To learn more, visit VPG at
www.vpgsensors.com.
Forward-Looking Statements
From time to time, information provided by us, including but not
limited to statements in this report, or other statements made by
or on our behalf, may contain "forward-looking" information within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements involve a number of risks, uncertainties, and
contingencies, many of which are beyond our control, which may
cause actual results, performance, or achievements to differ
materially from those anticipated.
Such statements are based on current expectations only, and are
subject to certain risks, uncertainties, and assumptions. Should
one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, expected, estimated, or
projected. Among the factors that could cause actual results to
materially differ include: general business and economic
conditions, changes in the current pace of economic recovery,
including if such recovery stalls or does not continue as expected;
difficulties or delays in completing acquisitions and integrating
acquired companies; the inability to realize anticipated synergies
and expansion possibilities; difficulties in new product
development; changes in competition and technology in the markets
that we serve and the mix of our products required to address these
changes; changes in foreign currency exchange rates; difficulties
in implementing our ERP system and the associated impact on
manufacturing efficiencies and customer satisfaction; difficulties
in implementing our cost reduction strategies, such as
underutilization of production facilities, labor unrest or legal
challenges to our lay-off or termination plans, operation of
redundant facilities due to difficulties in transferring production
to lower-labor-cost countries; and other factors affecting our
operations, markets, products, services, and prices that are set
forth in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2014. We undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
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VPGWendy WilsonSenior Director Investor Relations and Corporate
Communications919-374-5501wendy.wilson@vpgsensors.com
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