X-Rite Restructures in Response to Economic Downturn
Press release from the issuing company
GRAND RAPIDS, Mich.--Sept. 25, 2001--X-Rite, Incorporated announced today that it would take a restructuring charge in the third quarter of $800,000 in connection with the elimination of 60 jobs. The company cited the economic downturn in North America as the primary motivator for this action, and noted that the workforce reduction would save $3.5 million annually.
"These decisions are an unpleasant reality of hard economic times, and something we do not take lightly,'' said Michael C. Ferrara, president of X-Rite, Incorporated. "X-Rite has a responsibility to its customers, employees and shareholders to continuously assess all of its operations in order to deliver growth and profitability. We believe our core product markets can provide long-term growth, but for now they have slowed as a result of negative world economies and multiple industry slowdowns. These actions will allow us to continue to support new business initiatives and embrace new technological advances as we move into new markets with cutting-edge products and services.''
The company also stated that the reduction of jobs will affect all parts of its business and was not the result of a specific product or market downturn. Third quarter earnings are scheduled for release on October 18, 2001. A conference call will be scheduled closer to that date and available via webcast from the company's website, www.xrite.com.
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