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| HRC > SEC Filings for HRC > Form 8-K on 16-Jan-2009 | All Recent SEC Filings |
16-Jan-2009
Results of Operations and Financial Condition, Costs Associated with Exit
Hill-Rom Holdings, Inc. (the "Company") announced on January 14, 2009 revenue for the first fiscal quarter of $350 million, an increase of 2.6 percent versus the first quarter of fiscal 2008. This announcement is more fully described in the press release filed as Exhibit 99 to this Current Report on Form 8-K.
On January 13, 2009, the Board of Directors of the Company approved a management-recommended plan to aggressively manage the Company's cost structure through consolidation of operations, a voluntary early retirement program and organizational restructuring. The plan will impact as many as 450 employees of the Company. However, as a result of restructuring, consolidations and the need to relocate certain positions, the net reduction in positions is expected to be approximately 300 positions or 6 percent of the Company's U.S.-based workforce. The plan responds to a material reduction in capital spending by U.S. hospitals that began during the last half of the Company's first fiscal quarter and continues efforts to reduce the Company's cost structure. Affected employees are being offered enhanced severance packages, including ongoing health care benefits and outplacement services.
As a result of this plan, the Company estimates incurring total pre-tax charges in the range of $7 to $10 million in the second and third quarters of fiscal 2009 related to severance and early retirement benefits. This estimate excludes additional charges that may result from this plan including impairment of assets, lease terminations and possible pension and health care costs. The plan is expected to result in approximately $12 to $14 million in annual savings, about half of which is related to volume declines. The Company anticipates that the implementation of the plan will be substantially completed before the end of fiscal 2009, and that a majority of the charges will result in cash expenditures that will be substantially completed over the next two years.
The Company issued a press release on January 14, 2009 announcing approval of the plan, a copy of which is filed as Exhibit 99 hereto.
(d) Exhibits.
99 Press release dated January 14, 2009 issued by the Company.
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