|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the EYE 8-K filed Feb 14, 2006. Rationalization & Repositioning Strategy
AMO announced during the fourth quarter of 2005 a plan to accelerate the scope and timing of a broad rationalization and repositioning strategy. As part of this plan, AMO adopted a more aggressive timeline for discontinuing a variety of non-strategic cataract and eye care products, while eliminating or redeploying the resources that supported these products. Concurrently,
5
AMO began increasing its investment in higher-growth, higher-margin product lines. Key aspects of the accelerated rationalization and repositioning strategy include:
• AMO ceased production in 2005 of a variety of older-generation cataract and eye care products and began implementing a number of sales incentive programs to migrate customers to its core products. The company expects to lose approximately $30 million to $40 million in 2006 sales related to the discontinued products, and for this loss to be offset by growth of its new and technologically advanced products.
• AMO has made and continues to make organization changes, including ongoing implementation of initiatives designed to achieve better leverage of global manufacturing capacity, refinement of R&D skills and priorities, reallocation of sales and marketing resources and other actions. As a result, the company incurred pre-tax charges of $42.3 million in the fourth quarter of 2005 and expects to incur an additional $28 million to $38 million in write-offs and charges in the first half of 2006. These write-offs and charges are not included in the company’s adjusted earnings per share guidance.
• AMO is increasing its investment in key growth opportunities, primarily related to its refractive implant portfolio and LVC business. The operating costs associated with these investments are incorporated into adjusted earnings per share guidance for 2006.
This excerpt taken from the EYE 8-K filed Nov 2, 2005. Rationalization & Repositioning Strategy
On October 10, 2005, AMO said it was accelerating its previously announced rationalization and repositioning plans designed to maximize its competitive advantage as the global refractive leader and improve the global penetration of its core cataract, refractive and eye care brands. AMO began to rationalize certain non-core offerings in 2004 and had originally expected to
AMO Announces Third Quarter 2005 Results – Page 4
conclude the process in the latter half of 2006. AMO has since decided to adopt a more aggressive timeline for discontinuing non-strategic cataract and eye care products, while eliminating or redeploying the resources that support these products. Concurrently, AMO is increasing its investment in the growth of its refractive product lines. Key aspects of the company’s accelerated rationalization and repositioning strategy include:
“During the last three years, we have doubled our annual revenues, upgraded our product offering, filled our R&D pipeline, expanded our manufacturing capabilities, improved our information systems, reorganized our global infrastructure and strengthened our balance sheet,” said Mr. Mazzo. “All of these moves have been part of a broad strategy to reposition AMO to compete in key growth areas across each of our businesses and deliver improved profitability. Our opportunity continues to intensify, and we are confident that the steps we are taking today will allow us to capitalize on our strengths, mitigate our challenges and position us for growth.”
| EXCERPTS ON THIS PAGE:
RELATED TOPICS for EYE: |
| |||||||
