To: mattie who wrote (19842 ) 2/11/1999 6:37:00 PM From: Foad Respond to of 69125
Hi Mattie. FYI, This came out on BSX after the market close.biz.yahoo.com Thursday February 11, 4:44 pm Eastern Time Company Press Release SOURCE: Boston Scientific Corporation Boston Scientific Announces Impact Of Schneider Integration And Cost Reduction Initiatives NATICK, Mass., Feb. 11 /PRNewswire/ -- Boston Scientific Corporation (NYSE: BSX - news) today outlined the impact of its initiatives to integrate Schneider Worldwide and streamline its manufacturing operations. Since acquiring Schneider Worldwide last September, the Company has focused on its plan to achieve product synergies and manufacturing efficiencies on a global basis. The Company also continues to focus on rightsizing its global manufacturing capacity after four years and $6 billion of acquisitions. The Company is in the process of implementing a rationalization plan established after acquiring Schneider Worldwide. The rationalization plan takes into consideration duplicate capacity and opportunities for further leveraging of cost and technology platforms. The Company's actions will result in the displacement in the next year of approximately 2,000 current positions. The Company estimates that the costs associated with these activities will be approximately $62 million, most of which represents severance and related costs. Approximately $36 million of the total has been capitalized as part of the purchase price of Schneider. The remaining $26 million ($17 million, net of tax) has been charged to operations in the fourth quarter of 1998. These initiatives are expected to be substantially completed within the next twelve months and are already incorporated in the Company's 1999 Plan. Pete Nicholas, Chairman and Chief Executive Officer of Boston Scientific, said, ''While these actions are consistent with the strategic imperatives that drove our decision to acquire Schneider Worldwide, we very much regret the impact that they will have on certain of our employees, and we will be sensitive to all those involved. We are certain that our continuing focus on streamlining our cost structure will result in a stronger and more profitable platform upon which to grow within the industry that we helped pioneer.'' Boston Scientific is in the process of finalizing its financial results for the fourth quarter and year ended December 31, 1998. The Company plans to release complete financial results later this month. Boston Scientific is a worldwide developer, manufacturer, and marketer of medical devices. Since 1995 Boston Scientific has grown from $450 million in revenues with 2,000 employees to projected 1999 revenues of $3 billion with more than 12,000 employees. The Company has achieved a leadership position in each of the markets it serves. This press release contains forward looking statements. The Company wishes to caution the reader of this press release that actual results may differ from those discussed in the forward looking statements and may be adversely affected by, among other things, the ability of the Company to implement its overall business strategy, integration plans, cost containment initiatives, and other factors described in the Company's filings with the Securities and Exchange Commission. SOURCE: Boston Scientific Corporation