Itron Restructures
After a second quarter loss of $1.1 million, Itron Inc. announced that it has begun implementing a series of restructuring steps intended to improve efficiency and financial performance. The steps include a reduction in the size of the workforce and the phasing out of the remaining business activities of a jointly-owned entity. Approximately 100 positions, or 10 percent of the company`s workforce excluding direct manufacturing, will be eliminated between now and the end of the year. The company estimates that it will incur a charge in the third quarter of this year of approximately $2 to $3 million pre-tax, or 8 to 13 cents per share after-tax related to these actions.
According to Johnny Humphreys, Itron`s chairman, president and CEO, “While our sales activity remains high, the slow pace in industry-wide AMR bookings is continuing, driven primarily by ongoing regulatory uncertainties in the utility industry, particularly the electric industry. While we have received optimistic forecasts from many large customers, our current bookings do not support an increase in revenues during the last half of this year over the first half. Therefore, we are reducing our cost base to better align our spending with lower sales levels.”
