Hardinge Inc. Announces Cost Cutting Actions in Response to Global Economic Conditions
11 Dezembro 2008 - 8:10PM
PR Newswire (US)
ELMIRA, N.Y., Dec. 11 /PRNewswire-FirstCall/ -- Hardinge Inc.
(NASDAQ-GS: HDNG), a leading international provider of advanced
material-cutting solutions today announced actions taken in
response to significantly lower order activity to date in the
fourth quarter compared to the prior year, reflecting a continued
deterioration in global economic conditions. "The crisis in the
functioning of the global financial markets appears to be affecting
the ability of our customers to obtain and finalize credit and to
make final order placement decisions," said Richard L. Simons,
President and Chief Executive Officer. "This market paralysis is
making it very challenging for Hardinge, along with other
companies, to determine what level of business activity to expect
for the remainder of 2008, as well as during 2009." In response to
these uncertain conditions, the Company has taken a number of
actions to control expenses, including recent staff reductions of
approximately 70 employees in our North American operations for a
total reduction of approximately 160 employees during 2008. These
recent actions were across all organizational functions, with the
exception of engineering, reflecting management's belief that the
Company must maintain its investment in product development, one of
Hardinge's primary competitive strengths. The Company will also
shut down manufacturing operations for a two week period over the
holidays at our US manufacturing facility, and has reduced
production hours at our Taiwan and China manufacturing facilities
in response to the current lower order volumes. In addition, the
Company has made cuts in its discretionary spending in order to
reduce future SG&A expenses. "Despite this recessionary global
business environment, we anticipate positive cash flow in 2008 and
2009," continued Mr. Simons. "We have managed through other
challenging business cycles and believe we are well positioned to
successfully work through this one. We understand the steps we have
taken to adjust to the global economic situation are difficult on
our employees; however, we believe that these actions will enable
Hardinge to emerge a stronger Company." Hardinge is a global
designer, manufacturer and distributor of machine tools,
specializing in high-precision, computer controlled,
material-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 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, +1-607-378-4207 Web Site:
http://www.hardinge.com/
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