Texas medical device maker Greatbatch (NYSE:GB) raised its 2013 per-share earnings guidance as it announced new efforts to reorganize some of its business practices and reduce costs as it shifts from a components and sub-assemblies company to a developer of full medical devices.
Greatbatch will merge its sales & marketing and operations with its subsidiary Electrochem Solution in hopes of saving between $7-$7.7 million per year once the plan is fully realized. The company raised its 2013 adjusted EPS expectations from $1.90-$2.00 per share to $2.00-$2.05 on the news, excluding the costs of restructuring.
Greatbatch and its Electrochem subsidiary will merge sales & marketing and operations, rather than maintaining separate teams, resulting in some intra-company promotions and jobs-shifting and costing the company between $4.2-$5 million in restructuring charges, according to a regulatory filing.
Greatbatch didn’t suggest any upcoming layoffs, but did mention that its restructuring charges include $2.9-$3.2 million in severance and termination benefits.
A company spokesman did not immediately return calls for comment.
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