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Technology Stocks : Artesyn Technologies (ATSN) -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (594)	5/16/2002 8:24:53 AM
From: JakeStraw	Read Replies (1) \| Respond to of 603

Artesyn Consolidates European Manufacturing and Lowers Operating Costs biz.yahoo.com BOCA RATON, Fla.--(BUSINESS WIRE)--May 16, 2002--Artesyn Technologies, Inc. (Nasdaq:ATSN) today announced further cost reduction initiatives, including plans to close its Kindberg, Austria manufacturing facility. The transfer of related production to the company's facilities in Hungary and China is expected to be complete by March 2003. The Kindberg, Austria facility is primarily engaged in manufacturing power supplies for the telecommunications and wireless markets. During the closure period, Artesyn will work closely with customers to transfer production to lower-cost manufacturing locations. The company also initiated workforce reductions at its Youghal, Ireland, Madison, Wisconsin and Redwood Falls, Minnesota manufacturing facilities. Approximately 380 employees or 7% of the workforce will be affected by these actions. "Continually improving efficiency and ongoing reductions to our global cost structure are key components to Artesyn's long term strategy," commented Artesyn's President and CEO, Joseph M. O'Donnell. "The slowdown in the telecom and wireless markets has resulted in low utilization rates across our world-wide manufacturing facilities and a window of opportunity to consolidate production into our low-cost facilities in Hungary and China." "When fully implemented in 2003, we expect this and other actions taken in the quarter to generate cost savings of over $10 million annually," continued O'Donnell. "Importantly, by moving a large portion of the effected production to Hungary we are also maintaining a strong European presence to service this important market." Artesyn expects to record a total restructuring charge for these actions of $9.0 million, related to employee severance, disposition of assets, facility consolidations and transfer of equipment and inventory. The cash component is estimated to be approximately 75% of the total charge. The company anticipates that approximately $7.5 million of this charge will be recorded in the second quarter of 2002, with the remaining balance of the charge to be incurred over the succeeding three quarters.