Boston Scientific Corporation (BSX: 7.39 -0.08 -1.07%) has recently announced several management changes and restructuring initiatives with an objective to strengthening the company and positioning it for long-term success in terms of accelerating profitable growth and increasing shareholder value.
Few of the major changes include: the Cardiovascular Group and Cardiac Rhythm Management Group will be combined into one, stronger and more competitive unit; the company’s international headquarters will be eliminated; the Endosurgery group structure, which looks after the Endoscopy and Urology/Gynecology divisions, will no longer exist; several key managerial changes will be put in place, etc.
Boston expects these restructuring initiatives to lower gross expenses by $200 million to $250 million from the 2009 level in the next two years. They will also result in a gross headcount reduction of 1,000 to 1,300 employees. Boston expects to incur pre-tax charges of roughly $180 million to $200 million as a result of these restructuring activities.
Boston recently reported fourth quarter and full fiscal 2009 results. For the quarter, earnings per share were 20 cents, beating the Zacks Consensus Estimate of 13 cents. However, earnings were flat year over year. For fiscal 2009, earnings per share were 78 cents, beating the Zacks Consensus Estimate of 50 cents. However, earnings were lower than the year-ago figure of 80 cents.
The company also reported an expansion in its top-line in both the fourth quarter and fiscal 2009.
Boston Scientific manufactures medical devices and products used in a broad range of interventional medical specialties. The company faces significant competition across its product portfolio. The primary competitors include Johnson & Johnson (JNJ: 62.72 -0.19 -0.30%), Medtronic Inc. (MDT: 42.44 +0.14 +0.33%), Abbott Laboratories (ABT: 53.93 +0.39 +0.73%) and St. Jude Medical Inc. (STJ: 37.34 -0.03 -0.08%).
Posts
0 comments:
Post a Comment