MDS To Record Restructuring Charge
18 Juli 2008 - 1:00PM
PR Newswire (US)
TORONTO, July 18 /PRNewswire-FirstCall/ -- MDS Inc. (TSX: MDS,
NYSE: MDZ), a leading provider of products and services to the
global life sciences markets, today announced a restructuring plan
to drive improved profitability at MDS Pharma Services and MDS
Analytical Technologies. These restructuring actions are expected
to yield annual pre-tax savings of approximately $20 million and
result in a net reduction of approximately 210 employees.
Cumulative pre-tax restructuring charges associated with these
actions are anticipated to be approximately $18 million with the
majority of the charges recorded in Q3 fiscal 2008. The
Company also expects to record a pre-tax facility-related asset
impairment charge of approximately $10 million related to its MDS
Pharma Services Montreal site. The expected after-tax amount of
restructuring and asset impairment charges will reduce net income
and basic earnings per share for fiscal 2008 by approximately $20
million and $0.16, respectively. MDS is scheduled to release its
third quarter fiscal 2008 earnings on September 4, 2008,
followed by a conference call and webcast, at which time the
Company will provide additional comments and address the impact of
these charges on its fiscal 2008 guidance. Caution Concerning
Forward-Looking Statements This document contains forward-looking
statements. Some forward-looking statements may be identified by
words like "expects", "anticipates", "plans", "intends",
"indicates" or similar expressions. The statements are not a
guarantee of future performance and are inherently subject to risks
and uncertainties. The Company's actual results could differ
materially from those currently anticipated due to a number of
factors, including, but not limited to, successful integration of
structural changes, including restructuring plans, acquisitions,
technical or manufacturing or distribution issues, the competitive
environment for the Company's products and services, the degree of
market penetration of the Company's products and services, and
other factors set forth in reports and other documents filed by the
Company with Canadian and U.S. securities regulatory authorities
from time to time. About MDS MDS Inc. (TSX: MDS; NYSE: MDZ) is a
global life sciences company that provides market-leading products
and services for the development of drugs and diagnosis and
treatment of disease. We are a leading global provider of
pharmaceutical contract research, medical isotopes for molecular
imaging, radiotherapeutics, and analytical instruments. MDS Inc.
has more than 5,500 highly skilled people in 29 countries.
Find out more at http://www.mdsinc.com/ or by calling
1-888-MDS-7222, 24 hours a day. DATASOURCE: MDS Inc. CONTACT:
Investors: Kim Lee, MDS Inc., (416) 675-6777 x 34721, ; Media:
Janet Ko, MDS Inc., (416) 213-4167,
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