Hutchinson Technology Inc. told investors Tuesday that a planned restructuring will cut annual costs by $50 million to $55 million by March.
The company said last month that it is cutting 2,275-person its U.S. workforce by 30 to 40 percent, with certain manufacturing work moving from Hutchinson, Minn., to Eau Claire, Wis., and overseas.
The company plans to keep headquarters in Hutchinson, along with a center for research and development. It had earlier estimated that restructuring would save $45 million to $60 million a year.
Wayne Fortun, CEO and president, said he believes positive trends for some products, higher volume at Thailand operations and the restructuring plan will "improve our cost structure and competitive position."
"These changes will also help us become the lowest-cost manufacturer of suspension assemblies and return to positive cash flow and profitability," Fortun said.
Hutchinson reported a net loss of nearly $20.5 million in the three months ended March 27, which was affected by severance given to workers. Sales declined 28 percent to about $63.3 million in the second quarter.
WENDY LEE
