LONDON (Alliance News) - Laird PLC on Thursday set out plans to restructure and simplify its manufacturing capabilities in Europe and North America, as it reported a rise in revenue in sterling terms for the third quarter of 2015.
Laird said that, prior to exceptional costs related to the restructuring programme, it expects its 2015 earnings to be broadly in line with consensus.
Revenue in sterling rose to GBP160 million in the quarter to end-September, compared to GBP150 million a year before. However, the strength of the dollar held back revenue in dollar terms, falling to USD248 million from USD251 million a year before.
This takes revenue for the nine months to GBP466 million, up from GBP402 million.
Laird provides systems, components and services to protect electronics from electromagnetic interference and heat.
The company said it does "not anticipate a significant overall reduction in headcount, but a significant reduction in our site footprint, where we currently operate in 52 sites globally", as part of its restructuring plans. It expects pretax cash costs to be up to USD60 million, most of which will be treated as an exceptional cost. Laird said it doesn't expect these costs to impact its dividend or its ability to execute any further acquisitions.
Laird expects to deliver cash savings of at least USD20 million per year from the restructuring once fully implemented. The programme will run through 2016 and complete during 2017.
Laird currently expects the programme to be neutral to earnings in 2016, and produce "material benefits" progressively through 2017. However it said it will provide fuller guidance at its full-year results announcement next March.
"The changes announced today in redesigning our operating model mean that Laird will be in an even stronger position to benefit from developments around the Enterprise Internet of Things, as technology plays an increasingly central and sophisticated role in our lives," said Chief Executive David Lockwood in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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