ALMERE, The Netherlands - July 20, 2009 - ASM International N.V.
(NASDAQ: ASMI and Euronext Exchange in Amsterdam: ASM) announced
today that it is accelerating its cost reduction and restructuring of
worldwide Front-end operations. The goal of this restructuring
program, called PERFORM!, launched and announced earlier this year,
is to streamline ASMI's global operations and transfer Front-end into
a strong profit making organization. The Company is making an
important step in reaching this goal by increasing and accelerating
the cost reduction target to at least 40% (compared to the Q4 2008
run rate) to be realized in the first half of 2010, which is six
months earlier than previously announced.
The main components of the Company's accelerated execution plans are:
* The consolidation of its global Front-end Manufacturing
operations from Europe, the United States and Japan, into its
Front-end manufacturing operations in Singapore by the end of
2010. This will be achieved by: 1) completing the previously
announced transfer from Almere, the Netherlands, which is on
schedule; 2) phasing out the manufacturing operation in Phoenix,
Arizona, in the first half of 2010; and 3) transferring
manufacturing from Nagaoka, Japan, no later than the fourth
quarter of 2010. The Company believes these actions will also
lead to significant Working Capital reductions.
* The reduction of Selling, General and Administration expenses by
making fundamental changes in our global support infrastructure.
This includes a significant simplification and streamlining of
our warehousing operations and the further strengthening of the
Global Sales & Service organization which was created last year.
* The leveraging of Research and Development and our product
portfolio by reprioritization of strategic programs in order to
maximize their potential.
Following the implementation of these measures, ASMI will continue to
maintain strong Research and Development, Product Management,
Marketing and Customer Support activities in Almere, Phoenix and
Nagaoka/Tama.
Unfortunately, restructuring on this scale requires the loss of many
loyal and dedicated employees. The Company, however, remains
committed to executing this key program.
The Company expects that total restructuring charges of approximately
Euro 60 - 70 million, which include amounts disclosed earlier this
year, will largely be accounted for in the 2009 accounts with the
associated cash flows distributed relatively evenly over 2009 and
2010. The amounts include non-cash charges of an estimated Euro 10
million related to impairment of assets.
In addition, partly as a result of the current prolonged contraction
in the semiconductor industry, the Company will report an inventory
write-down of approximately Euro 20 - 25 million in the 2009 second
quarter results, which will be announced on July 29, 2009.
From time to time, ASMI may post additional information related to
this restructuring on its corporate website, www.asm.com.
Chuck del Prado
President and CEO of ASM International
About ASM International
ASM International N.V. and its subsidiaries design and manufacture
equipment and materials used to produce semiconductor devices. ASM
International and its subsidiaries provide production solutions for
wafer processing (Front-end segment) as well as assembly and
packaging (Back-end segment) through facilities in the United States,
Europe, Japan and Asia. ASM International's common stock trades on
NASDAQ (symbol ASMI) and the Euronext Amsterdam Stock Exchange
(symbol ASM). For more information, visit ASMI's web site at
www.asm.com.
Safe Harbor Statement under the U.S. Private Securities Litigation
Reform Act of 1995: All matters discussed in this statement, except
for any historical data, are forward-looking statements.
Forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those in the
forward-looking statements. These include, but are not limited to,
economic conditions and trends in the semiconductor industry
generally and the timing of the industry cycles specifically,
currency fluctuations, financing and liquidity matters, the success
of restructurings, the timing of significant orders, market
acceptance of new products, competitive factors, litigation involving
intellectual property, shareholder and other issues, commercial and
economic disruption due to natural disasters, terrorist activity,
armed conflict or political instability, epidemics and other risks
indicated in the Company's filings from time to time with the U.S.
Securities and Exchange Commission, including, but not limited to,
the Company's reports on Form 20-F and Form 6-K. The Company assumes
no obligation nor intends to update or revise any forward-looking
statements to reflect future developments or circumstances.
# # #
Investor Contacts:
Erik Kamerbeek
Tel: +31 88 100 8500
Mary Jo Dieckhaus
Tel: +1 212 986 2900
Media Contact:
Ian Bickerton
Tel: +31 20 6855 955
Mobile: +31 625 018 512
Charles Huijskens
Tel: +31 20 6855 955
Mobile: +31 653 105 072
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
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