Creo's Program Targets Savings of $24 Million
- Published: December 06, 2004, By pffc-online.com
PRESS RELEASE
VANCOUVER, CANADA - Creo has launched a program reportedly designed to streamline operations, strengthen its competitive cost position, and provide a platform for earnings growth. The program will eliminate over 200 positions globally (5% of the total workforce) and reduce expense by an annualized rate of approximately $24 million by the 2005 fiscal third quarter.
Creo estimates total pre-tax charges resulting from the program will total approximately $6 million. Of the total charges:
- reorganization in American, European, Middle Eastern, and African operations will result in approximately $4 million in expenses; and
- global workforce reduction will result in expenses of approximately $2 million.
Amos Michelson, Creo's CEO, stated, "The measures will allow us to achieve quarterly earnings before tax of at least 8% of revenue by the fiscal fourth quarter of 2005."
The company's outlook for the fiscal first quarter ending December 31, 2004 proposes revenue between $164 million and $171 million.
Learn more about this and other Creo developments at creo.com.
