Hardinge Implements Additional Cost Reduction Initiatives
01 Maio 2009 - 4:00PM
PR Newswire (US)
ELMIRA, N.Y., May 1 /PRNewswire-FirstCall/ -- Hardinge Inc.
(NASDAQ: HDNG), a leading international provider of advanced
metal-cutting solutions, today announced that it is implementing
additional actions to reduce the Company's cost structure more in
line with the current global demand levels for machine tools. The
following actions have been initiated: -- Starting May 11th, the
Company will begin a ten week furlough of approximately 80
employees in its Elmira, NY manufacturing machine division. This
represents roughly 20% of the Elmira based workforce. Hardinge has
1,300 employees throughout its worldwide operations. The Company
believes that current customer demand can be satisfied from
inventory on hand. Other areas of the Elmira factory will continue
to work a reduced workweek. -- Starting today, the Company reduced
the pay of all US based salaried employees, including corporate
officers, by an additional 5% resulting in a year to date salary
decrease of 10%. -- The Company will also suspend future accrual of
benefits under its US defined benefit pension plan (which was
closed to new participants in 2004) as of June 15, 2009, as well as
suspend Company contributions to the 401(K) program as of the same
date. "These are necessary actions that reflect a global economy in
which it is very difficult to forecast order and sales activity,"
said Richard L. Simons, President and Chief Executive Officer. "The
current recessionary conditions continue to impact the businesses
of our customers and, in turn, demand for our products. Orders for
the high-end machines produced in our Elmira facility have been
especially impacted by these market conditions. The only
appropriate course of action is to maintain a cost structure that
is in line with our current order levels, enabling the Company to
generate positive cash flow from operations." 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 2008 approximately
69% 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 Global Select Market 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, Hardinge Inc., +1-607-378-4207
Web Site: http://www.hardinge.com/
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