Haemonetics (NYSE:HAE) said today that it plans to cut roughly 11% of its global workforce as it looks to pare $80 million from its annual cash burn by the end of fiscal 2020.
The Braintree, Mass.-based blood management company said it plans to eliminate 350 positions by the end of its fiscal year in April. The company reported employing 3,107 workers as of April 1; a spokeswoman told MassDevice.com this morning that some of the affected positions are already open. Other cuts are in store for direct material and indirect spending, facilities and freight over the next 30 months, the company said.
“The workforce reduction will exclude certain identified critical roles in direct selling and clinical support, hourly plant workers and employees involved in critical, time-bound projects, as the company remains committed to ensuring effective ongoing business operations and strong customer service,” Haemonetics said.
“These are purposeful actions to streamline the way we work and enable us to better serve our customers, pursue our growth priorities and create an engaging and results-driven culture,” CEO Chris Simon said in prepared remarks.
Back in 2010 Haemonetics said it would cut about 170 workers and close facilities in Phoenix and Chicago as part of the integration of acquisition GlobalMed Technologies. In 2014, another integration – following the $550 million acquisition of Pall – prompted a 320-worker purge and the relocation of its equipment manufacturing from Braintree to a contract facility in Mexico. And in May 2016 the company said it would take a pre-tax charge of $26 million, including $17 million worth of “termination benefits,” as part of another round of layoffs aimed at boosting profitability and growth.
Today Haemonetics also reported fiscal second-quarter results that topped the consensus forecast on Wall Street, posting profits of $20.1 million, or 38¢ per share, on sales of $225.4 million for the three months ended Sept. 1. That amounts to a 1.4% bottom-line gain on sales growth of 2.3% compared with fiscal Q2 2017.
Adjusted to exclude one-time items, earnings per share were 48¢, 7¢ ahead of The Street, where analysts were looking for sales of $219.3 million.
“In the first half of fiscal 2018, we grew revenue 1.4% and adjusted net income 18%. Our turnaround is on track, our strategy is working and we are raising our fiscal 2018 adjusted earnings per share and free cash flow guidance. We are launching a comprehensive complexity reduction initiative to further improve our productivity and allow us to intensify the investments we are making to fuel our growth,” Simon said.
Haemonetics said it now expects to report fiscal 2018 adjusted EPS of $1.65 to $1.75, up from $1.55 to $1.65 previously, on flat revenue growth.
HAE shares closed down -0.6% at $46.83 apiece yesterday.