This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Haemonetics Announces Next Steps In Manufacturing Transformation

Stocks in this article: HAE SANM

BRAINTREE, Mass., June 19, 2013 /PRNewswire/ -- Haemonetics Corporation (NYSE: HAE) today announced several important developments in the pursuit of its previously announced manufacturing transformation. 

(Logo: http://photos.prnewswire.com/prnh/20120206/NE47232LOGO )

  • Haemonetics has selected Sanmina Corporation (NASDAQ: SANM) for the future production of medical devices currently manufactured in Braintree, Massachusetts. Sanmina is a leading global provider of integrated manufacturing solutions, components, products and repair, logistics and after-market services for the medical industry. Their combination of advanced technologies, extensive manufacturing expertise and economies of scale will enable Sanmina to meet the specialized needs of Haemonetics in a cost-effective manner.
  • A location in Penang, Malaysia has been selected for the construction of an Asian manufacturing facility.  This location offers Haemonetics proximity to customers in its fastest growing markets and to a number of key suppliers and medical equipment manufacturers, including key Sanmina Corporation facilities.  Additionally, this location will afford Haemonetics ready access to a technically skilled and educated workforce, as well as an advantageous cost position in a stable economy.
  • The Company announced plans to cease production operations at its manufacturing facility in Ascoli-Piceno, Italy during the current fiscal year 2014. Production of whole blood disposables sets, currently produced in Ascoli-Piceno, will be transferred to Haemonetics' manufacturing facilities in Tijuana, Mexico and Covina, California. 

Brian Concannon, President and CEO, commented: "Sanmina provides comprehensive manufacturing services to the medical industry at a scale that offers leading technology and economic advantages to our company, with quality and compliance at levels we require.  The selection of Penang, Malaysia for our own manufacturing site fits well with Sanmina's capabilities there and brings our own production close to the emerging markets where much of our revenue growth is being generated.  Consolidation of our whole-blood manufacturing in Tijuana and Covina will position us well for future growth. Our customers will continue to be very well served by these additional advances of our capabilities."

Combined integration costs and Value Creation & Capture ("VCC") investments, expenditures, write-offs and savings amounts were previously disclosed in a May 1 press release and detailed at the company's May 16 annual Investor Day event.  Such amounts have been updated to include the cessation of production operations in Ascoli-Piceno, Italy and are summarized in a schedule posted to the Company's Investor Relations website at the link which follows: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MTkwNDAyfENoaWxkSUQ9LTF8VHlwZT0z&t=1

Since cash transformation costs and asset write-offs are excluded from the Company's adjusted earnings and adjusted earnings per share, and since free cash flows are considered before transformation costs, these additional expenditures and costs have no impact upon the company's previously indicated fiscal 2014 guidance.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs