LIONVILLE, Pa. (AP) -- West Pharmaceutical Services Inc. said Tuesday it is cutting 320 jobs and closing a facility in Pennsylvania under a restructuring plan.
The company will close its manufacturing facility in Montgomery, Pa., which has been focusing on molded plastic components for consumer products. The company will also downsize operations at its facility in St. Austell, Cornwall, U.K., which makes components for disposable medical devices, as well as elastomeric and plastic components used in pharmaceutical packaging.
"The changing landscapes in the health care and consumer markets we serve require that we regularly evaluate our operations and adapt to changing conditions in order to successfully compete," said Chairman and CEO Donald E. Morel Jr., in a statement. "The plans announced today will reduce the manufacturing capacity devoted to product lines that no longer support sustainable, competitive operations, and will unfortunately result in the loss of a number of jobs over time."
The company said it will cut 170 jobs with the closure of the Pennsylvania facility, beginning in January and continuing into the third quarter. It will eliminate 150 jobs in the U.K. Restructuring costs will range from $18 million to $21 million, but the move will reduce annual operating costs by $12 million, the company said.
Meanwhile, the company said full-year profit would likely be at the low end of its previously announced $2.13 to $2.20 per share outlook, citing changes in its sales mix and currency exchange rates. It reaffirmed its revenue outlook for just under $1.1 billion to $1.11 billion and expects 2011 revenue to rise between 3 percent and 5 percent, excluding currency effects.
Analysts polled by Thomson Reuters had forecast profit of $2.18 per share on $1.1 billion in revenue in 2010.
Shares of West Pharmaceuticals fell 7 cents to $38.69 in morning trading.
The company will close its manufacturing facility in Montgomery, Pa., which has been focusing on molded plastic components for consumer products. The company will also downsize operations at its facility in St. Austell, Cornwall, U.K., which makes components for disposable medical devices, as well as elastomeric and plastic components used in pharmaceutical packaging.
"The changing landscapes in the health care and consumer markets we serve require that we regularly evaluate our operations and adapt to changing conditions in order to successfully compete," said Chairman and CEO Donald E. Morel Jr., in a statement. "The plans announced today will reduce the manufacturing capacity devoted to product lines that no longer support sustainable, competitive operations, and will unfortunately result in the loss of a number of jobs over time."
The company said it will cut 170 jobs with the closure of the Pennsylvania facility, beginning in January and continuing into the third quarter. It will eliminate 150 jobs in the U.K. Restructuring costs will range from $18 million to $21 million, but the move will reduce annual operating costs by $12 million, the company said.
Meanwhile, the company said full-year profit would likely be at the low end of its previously announced $2.13 to $2.20 per share outlook, citing changes in its sales mix and currency exchange rates. It reaffirmed its revenue outlook for just under $1.1 billion to $1.11 billion and expects 2011 revenue to rise between 3 percent and 5 percent, excluding currency effects.
Analysts polled by Thomson Reuters had forecast profit of $2.18 per share on $1.1 billion in revenue in 2010.
Shares of West Pharmaceuticals fell 7 cents to $38.69 in morning trading.
