Henry Schein sees FY18 one-time restructuring charge of 22c-27c
Henry Schein is providing details on a comprehensive restructuring plan designed to increase profitability by improving business efficiencies, reducing redundancies and maximizing the company's infrastructure. The company expects to record a one-time restructuring charge in 2018 of between $45M-$55M on a pretax basis, or 22c-27c per diluted share. This restructuring charge primarily includes severance pay, facility closing costs, and outside professional and consulting fees directly related to the restructuring plan. CEO Bergman stated, "As we noted in our first-quarter communications, we periodically look to reduce costs, particularly following a number of acquisitions, which create redundant activities. We are also looking at opportunities to augment technology solutions to generate improved efficiencies across our businesses. Accomplishing this through a coordinated effort is the most efficient means of realizing lower costs. By continuing to streamline our operations, we expect to create a leaner organization that will allow us to better serve our customers' rapidly changing needs and our priority is to continue to build shareholder value. These changes are difficult to make, however, we recognize that they are necessary to enable Henry Schein to continue to build upon our success as well as to deliver solid long-term financial returns to our shareholders."