Mettler Targets $100 Million in Cost Savings
Mettler-Toledo indicated on the call that its Lab business would be less impacted by the reductions than its Industrial business. In the first quarter, the Laboratory business accounted for 45% of revenues, or approximately $168 million. The restructuring is expected to be completed by year end. Mettler recently reduced its 2009 sales forecast from a decline of 4%–8% to a decline of 8%–12%. (For Mettler’s first-quarter results, see page 12.)
Columbus, OH 4/30/09—Mettler-Toledo has announced an expansion of its $40 million cost savings program that began in the fourth quarter of 2008 in response to the economic downturn. The program will now aim for $100 million in annual savings, including a $50 million reduction in personnel costs. In total, the company plans to reduce its workforce by 1,000 people, or 9%. Mettler-Toledo President and CEO Olivier Filliol stated on the company’s first-quarter conference call: “We expect the majority of the reductions will take place among manufacturing and related personnel, including temporary, contract workers and supervisory positions, and administrative personnel. In addition, we plan to consolidate some management positions.” He explained that the reductions target certain businesses and functions. Cost control measures also include reductions in discretionary spending, fewer working hours in some cases, and salary increases only when legally mandated. The company expects to record pre-tax restructuring charges of $40 million this year, with $14.8 million incurred in the first quarter.
