Bausch & Lomb establishes a $ 27 million restructuring reserve to improve future performance; Eyewear manufacturing reconfiguration will result in closing of Oakland, Maryland facility and work force reductions in Rochester, New York.ROCHESTER, N.Y.--(BUSINESS WIRE)--Jan. 10, 1996--Bausch & Lomb (NYSE/BOL) announced today it will record a $27 million restructuring reserve, which will reduce 1995 fourth quarter and full year earnings by approximately 30 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Actions covered by the reserve are being taken to enhance future financial performance, especially in the company's eyewear eye·wear n. 1. Eyeglasses, goggles, or other objects worn over the eyes. 2. Fashionable eyeglasses. business. More than half of the reserve, approximately $15 million, relates to severance and plant closure costs associated with a reconfiguration of manufacturing processes, plus some consolidation of administrative functions, in the company's eyewear business. The remainder stems from a partial consolidation of various administration and production activities for the company's Charles River Charles River River, eastern Massachusetts, U.S. The longest river wholly in the state, it flows into Boston Bay after a course of about 80 mi (130 km). Navigable for about 7 mi (11 km), its estuary separates the cities of Boston and Cambridge. Laboratories subsidiary; the disposition of contact lens contact lens, thin plastic lens worn between the eye and eyelid that may be used instead of eyeglasses. Actors, models, and others wear them for appearance, and athletes use them for safety and convenience. inventories for product lines to be discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: in 1996; costs related to the elimination of approximately 35 corporate staff positions; and the sale of a company airplane airplane, aeroplane, or aircraft, heavier-than-air vehicle, mechanically driven and fitted with fixed wings that support it in flight through the dynamic action of the air. . Commenting on the actions announced today, William H. Waltrip, chairman and chief executive officer, said, "The management of Bausch & Lomb is committed to acting decisively to achieve the improved financial performance contemplated in the company's three-year strategic plan. While workforce reductions are surely the most difficult actions to take, we are certain that these steps are in the long-term best interests of our shareholders, our employees and our customers." The manufacturing reconfiguration in the eyewear business involves the establishment of three vertically- integrated Product Delivery Centers to serve major global markets. The centers will be established in conjunction with existing company eyewear manufacturing facilities - the European center in Waterford, Ireland; the Asia Pacific center in Fanling, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. ; and the U.S./North America center at San Antonio, Texas “San Antonio” redirects here. For other uses, see San Antonio (disambiguation). San Antonio is the second most populous city in Texas, the third most populous metropolitan area in Texas, and is the seventh most populous city in the United States. As of the 2006 U.S. . Each of these facilities will be able to manufacture complete sunglass sun·glass n. 1. A convex lens used to focus the sun's rays and produce heat, especially for ignition. 2. sunglasses Eyeglasses with tinted or polarizing lenses to protect the eyes from the sun's glare. product, whereas in the current structure lenses are produced in some facilities, frames in others, and assembly completed at various locations. As part of the new configuration, Bausch & Lomb's Oakland, MD facility, which employs approximately 600 workers, primarily in lens finishing operations, will be closed. Also, the Frame Center facility in Rochester, NY, which currently provides plastic and metal frames for assembly at various locations throughout the world will become a manufacturing support center, with a downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing in employment as a result. Approximately 200 positions will be eliminated in 1996. "We have some of the most powerful brands in the sunglass market, and a vastly improved flow of new products," said Waltrip. "But to be able to swiftly respond to changing customer demands in our global markets and to lower costs, it is essential for us to have manufacturing facilities with full production capabilities located within the markets we serve. We are acutely aware that actions like these are extremely painful and disruptive for our employees and their families. We take these steps with extreme regret. But the reality is that our future success depends on accelerating our conversion to this new manufacturing strategy, which will improve our speed to market, flexibility and profitability." The remainder of the $27 million reserve covers actions to address the company's previously announced commitment to reduce annual operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. by $50 million over the next three years. While the development of plans to fully accomplish that objective is not yet complete, these initial actions are estimated to reduce annual operating expenses by $20-$25 million, up to half of which could be realized in 1996. Additional opportunities to streamline the global organization, take advantage of operating synergies which may exist between business units, improve logistics and distribution and create shared services shared services, n.pl the administrative, clinical, or other service functions that are common to two or more hospitals or their health care facilities and used jointly or cooperatively by them. are being aggressively pursued. "We can and will move quickly to meet our expense reduction goals, and to become a more efficient and more effective organization," Waltrip said. CONTACTS: Media Barbara M. Kelley 716/338-5386 (office) 716/621-7141 (residence) Holly Echols 716/338-8064 (office) 716/473-7104 (residence) 800/701-1816 (pager) Investor Charles Poole 716/338-6553 (office) 716/385-6736 (residence) |
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