Watts Water Technologies Inc. posted lower-than-expected
quarterly results and said it would close three facilities and cut 400 jobs due
to the continued weakened markets.
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 toReuters,
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.
