Haemonetics (NYSE:HAE) said yesterday that it plans to 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.
The Braintree, Mass.-based blood management company also said it named Chris Simon to be its new CEO, replacing interim chief Ron Gelbman, who took the reins after the September 2015 departure of Brian Concannon.
Haemonetics also issued its sales and earnings guidance for the fiscal 2017 year ending next April that missed the consensus expectation on Wall Street.
Simon, who leads the global medical products practice at McKinsey & Co., also led the management consultancy’s review of Haemonetics, the company said. He’s slated to start in Braintree May 16.
“Haemonetics has such a well-earned reputation in plasma collection, donor centers and hospitals, and I am honored to have been chosen to lead this company,” Simon said in prepared remarks. “I look forward to advancing the strategic plan developed with the Haemonetics leadership team and board of directors to drive Haemonetics towards a bright future.”
“With more than 20 years of experience consulting in the medical device and pharmaceutical industries, Chris has a proven track record of helping businesses transform and grow,” the Haemonetics board added. “Under Chris’s leadership, we are confident that the company will grow and innovate to serve our customers worldwide.”
Haemonetics said the restructuring is expected to deliver a 37-per-share hit to earnings, guiding for adjusted EPS of $1.40 to $1.50 on sales of $850 million to $875 million, down -4% to -7% from fiscal 2016.
Analysts on The Street were looking for adjusted EPS of $1.55 on sales of $911.3 million. HAE shares closed down -0.1% at $27.27 apiece yesterday.
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.