STERIS announced a targeted restructuring plan, which includes the closure of two manufacturing facilities, one in Brazil and one in England, as well as other actions including product rationalization
. Less than 200 positions will be eliminated as a result of the restructuring plan.
Hain Celestial US sales fell 5% to $1.2 billion, but that includes a $60.0 million impact from inventory realignment of certain customers and product rationalization
and $14.0 million in foreign exchange movements driven by the Ella's Kitchen brand, which will be reported in the UK segment going forward.
Further, many suppliers in the raw material and intermediate markets struggle with their financial results; as a result, it is fair to assume that we will continue to see steady product rationalization
and the potential for ongoing mergers and acquisitions.
The charges reflect costs associated with facilities consolidation, product rationalization
, workforce reductions and program discontinuance.
Therefore, it's imperative to keep the sales team up to date on the progress of the integration, particularly any impending challenges with product rationalization
or product availability.
In the future, we may look at some product rationalization
, but for the near term we see no need for the elimination of products.
Operating results for the fiscal 2005 period include a $21.3 million gain from settlements of antitrust cases involving drug manufacturers, partially offset by a $3.8 million charge for facility consolidations and employee severance, a $6.6 million charge for a generic pharmaceutical manufacturer's bankruptcy, and a $6.9 million charge for product rationalization
in the company's technology business--resulting in a net pretax gain of about $4 million.
As a result, increased volumes and higher prices helped push operating profits into a far better position helped further by product rationalization
and efficiency programs.
Asked whether Mutch would consider selling off more of Peregrine's assets - prior to the restructuring it sold its Remedy, Extricity and Harbinger business lines - he replied, "I think I will certainly look at the product rationalization
, I need to come up to speed on that and get an in-depth understanding of how to run and grow the company going forward."
A total design review and product rationalization
could scrap "ho-hum" mediocre products in the "close to production" pipeline.
These anticipated synergies will result from product rationalization
; efficiencies in administration, procurement, manufacturing and marketing; and savings from improved direct distribution of PCs and servers.