Watts Water Posts Low Results, Consolidates Facilities
The company had announced a set of restructuring actions in 2008 where it said it would cut jobs, freeze salaries and suspend its share buyback to save costs. Now it says it will consolidate North America and China facilities to either existing ones or relocate to a new central facility in the United States.
According to Reuters, Watts Water expects to incur a charge of about $17.2 million through December 2009 and save about $4.8 million annually (expected to be fully realized in 2010). Watts Water is also evaluating a potential impairment charge of up to $22 million, which if incurred will reduce its fourth-quarter earnings.
For the fourth quarter, net income fell to $13.7 million, or 37 cents a share, from $21.5 million, or 55 cents a share, a year ago. Income from continuing operations was 38 cents a share.
Revenue rose marginally to $347.1 million. The company reports that results were hurt by sales declines in North America and China, and weakening of the Canadian dollar.
Source: Watts Water Technologies Inc.