Estimated Total Fiscal 2016 Savings Increased
to $6.7 Million from Additional Action
MALVERN, Pa.--(BUSINESS WIRE)--
Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of
precision sensors and systems, today provided an update to its
previously announced global restructuring and cost reduction plan and
increased its estimated total fiscal 2016 year savings to $6.7 million,
from the previously announced $6.0 million.
The company announced an increase of the global plan with the decision
to close its facility in Alajuela, Costa Rica. This action will be
completed by the end of May, 2016, and will result in annual savings of
$1.2 million of which $0.7 million will be realized in the company’s
2016 fiscal year, with a charge of approximately $0.6 million in the
current quarter. Production will be relocated to existing facilities in
the U.S. and in Israel.
In commenting on the consolidations and savings, Mr. Shoshani added, “As
we progressed through the implementation of our plan, we identified more
opportunities to save costs, drive efficiency and increase capacity
across our global footprint. With the addition of the facility closure
in Costa Rica, we have increased our total savings estimate for 2016 to
$6.7 million. I am pleased with the progress we have made with our
original plan, as well. Our facility closure in Asia has progressed
smoothly and will be completed by the end of May, 2016.”
As previously reported on November 16, 2015, the company announced a
plan with these key elements, most of which have been completed, except
for the closure of the facility in Asia:
-
Cost reductions 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.
-
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.
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; difficulties or delays in completing acquisitions
(including the acquisition of Stress-Tek) 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 systems
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- 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,
2015. We undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160323005750/en/
VPG
Wendy Wilson
Senior Director Investor Relations and
Corporate Communications
919-374-5501
[email protected]
Source: VPG