Company to take definitive action to improve
overall efficiency and reduce costs, resulting in $6.0 million of
expected savings
MALVERN, Pa.--(BUSINESS WIRE)--
Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of
precision sensors and systems, today announced restructuring and cost
reduction actions that are expected to improve overall efficiency by
lower operating costs by approximately $6.0 million annually, beginning
in 2016. The cost reduction steps have already begun and reflect recent
market conditions.
Ziv Shoshani, VPG’s chief executive officer said, “We have begun
implementing our restructuring and cost reduction plan, which should
result in a cash restructuring charge of approximately $4.0 million
which will impact, primarily, the fourth fiscal quarter of 2015.”
Key elements of the plan include:
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The cost reductions are expected to come from lower manufacturing
costs, including savings from a force sensor facility closure in Asia
in the second quarter of 2016, with continued production consolidation
into VPG’s facility in India.
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Consolidation and streamlining of certain product lines in the Foil
Technology Product and Force Sensors segments, and additional
workforce reductions in the Weighing and Control Systems segment.
Mr. Shoshani added, “While we have taken action in response to
macro-economic challenges, we remain focused on strategy execution to
drive positive operational and financial results, and to building a
stronger future for the company.”
About VPG
Vishay Precision Group, Inc. (VPG) is an internationally recognized
designer, manufacturer and marketer of: components based on its
resistive foil technology; sensors; and sensor-based systems
specializing in the growing markets of stress, force, weight, pressure,
and current measurements. VPG is a market leader of foil technology
products, providing ongoing technology innovations in precision foil
resistors and foil strain gages, which are the foundation of the
company's force sensors products and its weighing and control systems.
The product portfolio consists of a variety of well-established brand
names recognized for precision and quality in the marketplace. To learn
more, visit VPG at www.vpgsensors.com.
Forward-Looking Statements
From time to time, information provided by us, including but not limited
to statements in this report, or other statements made by or on our
behalf, may contain "forward-looking" information within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements
involve a number of risks, uncertainties, and contingencies, many of
which are beyond our control, which may cause actual results,
performance, or achievements to differ materially from those anticipated.
Such statements are based on current expectations only, and are subject
to certain risks, uncertainties, and assumptions. Should one or more of
these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from
those anticipated, expected, estimated, or projected. Among the factors
that could cause actual results to materially differ include: general
business and economic conditions, changes in the current pace of
economic recovery, including if such recovery stalls or does not
continue as expected; difficulties or delays in completing acquisitions
and integrating acquired companies; the inability to realize anticipated
synergies and expansion possibilities; difficulties in new product
development; changes in competition and technology in the markets that
we serve and the mix of our products required to address these changes;
changes in foreign currency exchange rates; difficulties in implementing
our ERP system and the associated impact on manufacturing efficiencies
and customer satisfaction; difficulties in implementing our cost
reduction strategies, such as underutilization of production facilities,
labor unrest or legal challenges to our lay-off or termination plans,
operation of redundant facilities due to difficulties in transferring
production to lower-labor-cost countries; and other factors affecting
our operations, markets, products, services, and prices that are set
forth in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2014. We undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
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VPG
Wendy Wilson
Senior Director Investor Relations and
Corporate Communications
919-374-5501
[email protected]
Source: VPG