October 28, 2011 – Itron aims to increase corporate efficiency and lower manufacturing costs, and calls for the cutting of some 750 full-time positions, the sale or closure of six of the company’s 31 manufacturing facilities and the reduction of operations at “several” other plants. All told, the measures are expected to save Itron about $15 million in the second half of 2012, for an annualized cost savings of around $30 million.
LeRoy Nosbaum, Itron’s president and CEO, cited increased market competition and changing operation needs as reasons for the change.
“This is a difficult but necessary decision that will better position Itron to succeed in today’s increasingly competitive market and create value for stockholders,” Nosbaum said.
Set to take place over the next 15 to 18 months, the changes will also include the disposition of “certain non-core businesses.”
“We are confident that our disciplined approach to increasing manufacturing utilization will simplify our operations and lower our costs,” Nosbaum said.
The announcement came on the same day Itron released its third-quarter 2011 financial results, which showed quarterly revenues of $616 million and a GAAP net loss per share of $12.70. Its financial report also showed a $540 million non-cash “goodwill impairment charge” related to its 2007 acquisition of European metering firm Actaris. Some of the facilities set to be closed were those acquired through the Actaris purchase.