Hill-Rom Announces Restructuring Actions
BATESVILLE, Ind., March 31 Hill-Rom (NYSE: HRC) announced today organizational changes consistent with its on-going efforts to improve its cost structure. The changes include the elimination of approximately 160 positions throughout the company.
"These actions are being taken consistent with our commitment to improve our operating margins and deliver enhanced value to our shareholders," said John J. Greisch, president and CEO of Hill-Rom. "The organizational changes we are announcing today will reduce our operating costs, simplify our business structure, improve processes and increase the accountability of our customer-facing employees to focus more closely on our customer needs."
At the same time, Greisch confirmed that the company will continue to pursue its growth strategy, driven by increasing investments in Research & Development and a focus on investing in revenue-generating initiatives in markets throughout the world.
The company expects to incur a special charge associated with these actions during the quarter ending March 31, 2010 of $4 to $5 million, related primarily to severance benefits. The full year savings from these actions are estimated to be approximately $16 million. Details of the charge will be discussed on the company's earnings call for the second quarter on May 5, 2010.
ABOUT HILL-ROM HOLDINGS, INC.
Hill-Rom is a leading worldwide manufacturer and provider of medical technologies and related services for the health care industry, including patient support systems, safe mobility and handling solutions, non-invasive therapeutic products for a variety of acute and chronic medical conditions, medical equipment rentals and information technology solutions. Hill-Rom's comprehensive product and service offerings are used by health care providers across the health care continuum and around the world in hospitals, extended care facilities and home care settings to enhance the safety and quality of patient care.
Hill-Rom... enhancing outcomes for patients and their caregivers.
Disclosure Regarding Forward-Looking Statements
Certain statements in this press release contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company's future plans, objectives, beliefs, expectations, representations and projections. The Company has tried, wherever possible, to identify these forward-looking statements using words such as "intend," "anticipate," "believe," "plan," "encourage," "expect," "may," "goal," "become," "pursue," "estimate," "strategy," "will," "projection," "forecast," "continue," "accelerate," "promise," "increase," "higher," "lower," "reduce," "improve," "expand," "progress," "potential" or the negative of those terms or other variations of them or by comparable terminology. The absence of such terms, however, does not mean that the statement is not forward-looking. It is important to note that forward-looking statements are not guarantees of future performance, and the Company's actual results could differ materially from those set forth in any forward-looking statements. Factors that could cause actual results to differ from forward-looking statements include but are not limited to: the Company's dependence on its relationships with several large group purchasing organizations, whether the Company's new products are successful in the marketplace, impacts of healthcare reform, compliance with federal healthcare programs, collections of accounts receivable, compliance with FDA regulations, antitrust litigation, potential exposure to product liability or other claims, failure of the Company's announced or future strategic initiatives and restructuring and realignment activities to achieve expected growth, efficiencies or cost reductions, adverse consequences resulting from the spin-off of the funeral services business, failure of the Company to execute its acquisition and business alliance strategy through the consummation and successful integration of acquisitions or entry into joint ventures or other business alliances, increased costs or unavailability of raw materials, adverse changes in global economic conditions or disruptions of credit markets, labor disruptions, the ability to retain executive officers and other key personnel, liquidity of auction rate securities, and certain tax-related matters. For a more in depth discussion of these and other factors that could cause actual results to differ from those contained in forward-looking statements, see the discussions under the heading "Risk Factors" in the Company's previously filed Annual Report on Form 10-K for the period ended September 30, 2009, and the Quarterly Report on Form 10-Q for the quarter ended December 31, 2009, previously filed. The Company assumes no obligation to update or revise any forward-looking statements.
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