QIAGEN launches restructuring initiatives, revises outlook for 2016 earnings and provides initial net sales and adjusted earnings guidance for 2017
Venlo, The Netherlands, November 2, 2016 – QIAGEN N.V. announces a series of restructuring initiatives to improve efficiency and profitability through targeted actions planned to be implemented in the fourth quarter of 2016 and in 2017.
Based on these initiatives, QIAGEN has revised its adjusted diluted EPS outlook for 2016 to approximately $0.87-0.88 per share at constant exchange rates (CER), but reaffirms its previous guidance for $1.10-1.11 CER per share without these measures. QIAGEN also reaffirms its full-year 2016 sales outlook for 6-7% CER growth.
The initiatives involve closing the Valencia, California, site as well as plans to spin off certain activities at the site in Hombrechtikon, Switzerland, before closure; expanding the use of shared service centers and global centers of excellence to bring together activities at key locations; streamlining selected organizational structures to reduce complexity; realigning the roles of global and regional marketing teams and also creating new global centers of excellence for certain marketing functions; and optimizing sales channels to better engage with customers, including through greater use of digital channels. These initiatives will involve workforce reductions which will be handled in a socially responsible manner with respect for employees and in compliance with local labor laws.
A pre-tax restructuring charge of approximately $75 million (or about $0.22-0.23 CER per share after taxes) is planned for the fourth quarter of 2016, including approximately $35 million of non-cash items. In 2017, a pre-tax restructuring charge of approximately $10 million (or about $0.03 CER per share after taxes) is planned to be taken. In line with QIAGEN’s policy, these restructuring charges will not be excluded from adjusted results.
For the full-year 2017, QIAGEN is providing initial guidance for net sales growth of approximately 6-7% CER, with expectations for accelerating organic growth, and for adjusted diluted EPS of approximately $1.25-1.27 CER per share. This outlook for adjusted EPS is based on operating and financial leverage that includes anticipated benefits from completion of the planned $300 million share repurchases and restructuring actions in 2016, but excludes the expected $0.03 per share of restructuring costs to be taken in 2017.
5912 PL Venlo
Frankfurt Stock Exchange, Regulated Market (Prime Standard)