Hardinge Announces Additional Cost Reduction Actions
03 Fevereiro 2009 - 7:47PM
PR Newswire (US)
ELMIRA, N.Y., Feb. 3 /PRNewswire-FirstCall/ -- Hardinge Inc.
(NASDAQ: HDNG), a leading international provider of advanced
metal-cutting solutions, today announced that it would implement a
series of actions designed to bring the Company's planned
production levels and cost structure more in line with current
global demand levels. The following actions have been initiated in
January and February: -- Effective February 9, 2009, the Company's
Elmira, NY production facility will initiate a four-day, 32 hour
work week. -- Production in our Asian facilities will be shut down
for one week in February, following a similar action in January. --
The base pay of all U.S. employees who are not subject to the
reduced workweek, including Corporate officers, will be reduced by
5%. -- Overtime has been discontinued at most of our facilities. --
A hiring freeze has been initiated. -- Worldwide, an additional 36
positions have been eliminated, affecting overhead and production
staffing. "We all recognize that these are painful actions which
impact the lives of our employees and their families," said Richard
L. Simons, President and Chief Executive Officer. "However, the
current severe recessionary conditions are negatively impacting our
customers, and in turn worldwide demand for our products. The
responsible course of action is to significantly reduce our
production levels and cost structure in order to generate positive
cash flow from operations and to remain competitive for the long
run. Our strong balance sheet still allows us to effectively
compete and pursue strategic initiatives that are critical to our
long term success. We believe that these steps will accelerate the
Company's return to profitability once the economic environment
improves." "We will continue to monitor economic conditions and
their effects on our business. We are hopeful that the economic
stimulus programs being enacted by governments in our major markets
will improve the business outlook. However, we will take
appropriate actions to further reduce our costs as we deem
necessary, while working to minimize the impacts on our customers
and our employees," Mr. Simons continued. Hardinge is a global
designer, manufacturer and distributor of machine tools,
specializing in high-precision, computer controlled, metal-cutting
machines. The Company's products are distributed to most of the
industrialized markets around the world and in 2007 approximately
66% of sales were from outside of North America. Hardinge has a
very diverse international customer base and serves a wide variety
of end-user markets. Along with metalworking manufacturers which
make parts for a variety of industries, our customers include a
wide range of end users in the aerospace, agricultural,
transportation, basic consumer goods, communications and
electronics, construction, defense, energy, pharmaceutical and
medical equipment, and recreation industries, among others. The
Company has manufacturing operations in the United States,
Switzerland, Taiwan and China. Hardinge's common stock trades on
NASDAQ under the symbol, "HDNG." For more information, please visit
http://www.hardinge.com/. This news release contains
forward-looking statements (within the meaning of Section 27A of
the Securities Act of 1933, as amended and Section 21E of the
Securities Exchange Act of 1934, as amended). Such statements are
based on management's current expectations that involve risks and
uncertainties. Any statements that are not statements of historical
fact or that are about future events may be deemed to be
forward-looking statements. For example, words such as "may,"
"will," "should," "estimates," "predicts," "potential," "continue,"
"strategy," "believes," "anticipates," "plans," "expects,"
"intends," and similar expressions are intended to identify
forward-looking statements. The company's actual results or
outcomes and the timing of certain events may differ significantly
from those discussed in any forward-looking statements. The company
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events,
or otherwise. Contact: Edward Gaio Vice President and CFO (607)
378-4207 DATASOURCE: Hardinge Inc. CONTACT: Edward Gaio, Vice
President and CFO, +1-607-378-4207 Web Site:
http://www.hardinge.com/
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