WEST KINGSTON, R.I., June 27 /PRNewswire-FirstCall/ -- American Power
Conversion (Nasdaq: APCC) (APC) today announced initiatives to reduce
costs, improve efficiencies and locate operations closer to the customer by
streamlining its operations in Ireland.
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APC's plans call for the consolidation of Irish manufacturing
operations in its Castlebar, Ireland facility and the redeployment of
certain customer- facing positions to locations in the Europe, Middle East
and Africa region in closer proximity to customers. The company currently
intends to retain select sales, information technology, research and
development and business support functions in its existing Galway, Ireland
facility. APC will begin discussions with its workforce in Ireland with the
objective of reducing approximately 200 to 250 positions within Ireland,
primarily in the manufacturing, operations and customer support areas.
"In an effort to improve our competitiveness as well as become
increasingly customer-centric, APC has been actively working to reduce
operational costs and improve company productivity through the transition
of production to lower cost areas as well as the deployment of
customer-facing activities closer to the customer," explained Rodger B.
Dowdell, Jr., APC president and chief executive officer. "The redeployment
and the reduction of certain positions in Ireland is the direct result of
this strategy, and while this was a very difficult decision to make, it
better positions APC both financially and competitively. We will continue
to work to better align manufacturing capacity with demand and optimize
resource location to maximize customer satisfaction globally."
The estimated range of costs in connection with this plan is
approximately $4.0 million to $5.0 million, consisting primarily of
one-time employee severance costs, which will be recognized in the third
quarter 2006. The company anticipates completing the plan in the first
quarter of 2007 and that all of the expected costs will result in future
cash expenditures.
Safe Harbor Provision
This press release contains forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995. All
statements in this press release that do not describe historical facts,
such as statements concerning the Company's future plans or prospects are
forward- looking statements. All forward-looking statements are not
guarantees and are subject to risks and uncertainties that could cause
actual results to differ from those projected. The factors that could cause
actual results to differ materially include the following: the Company's
ability to improve the execution of its operations processes and eliminate
operational waste and excess expense; ramp up, expansion, transfer and
rationalization of global manufacturing capacity, including successfully
consolidating its Irish manufacturing operations in Castlebar, Ireland and
redeploying certain customer-facing positions within the Europe, Middle
East and Africa region; the Company's ability to effectively align
operating expenses and production capacity with the current demand
environment; and the risks described from time to time in the Company's
filings with the Securities and Exchange Commission.
About American Power Conversion
Founded in 1981, American Power Conversion (Nasdaq: APCC) (APC) is a
leading provider of global, end-to-end solutions for real-time
infrastructure. APC's comprehensive products and services for home and
corporate environments improve the availability, manageability and
performance of sensitive electronic, network, communication and industrial
equipment of all sizes. APC offers a wide variety of products for
network-critical physical infrastructure including InfraStruXure(R), its
revolutionary architecture for on-demand data centers, as well as physical
threat management products through the company's NetBotz(R) division. These
products and services help companies increase the availability and
reliability of their IT systems. Headquartered in West Kingston, Rhode
Island, APC reported sales of $2.0 billion for the year ended December 31,
2005, and is a Fortune 1000, Nasdaq 100 and S&P 500 Company. All trademarks
are the property of their owners.
For more information contact:
Debbie Hancock, APC investor relations director, 401-789-5735, ext.
2994, debbie.hancock@apcc.com
SOURCE American Power Conversion
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CONTACT: Debbie Hancock, APC investor relations director, +1-401-789-5735, ext. 2994, debbie.hancock@apcc.com
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