Albany, NY, device outfit AngioDynamics ($ANGO) is planning to consolidate two of its plants, shedding up to 100 employees in an effort to save as much as $18 million over the next three years.
Under the plan, the company will shift its New York manufacturing operation to a facility in Glens Falls, phasing out a plant in Queensbury but keeping a distribution center there. AngioDynamics plans to spend about $7 million to get its consolidated plant up to snuff, and the company expects to incur about $2 million in one-off charges tied to the restructuring.
The move is part of a broader cost-cutting effort for AngioDynamics, adding on to the $10 million it saved last fiscal year and the $5 million it expects to cut in fiscal 2014, which began in June.
"Our operational excellence program is focused on creating an organization that is more efficient within the context of its current assets," Senior Vice President George Bourne said in a statement. "We believe bringing our New York manufacturing teams under one roof and centralizing our distribution center will result in the propagation of best practices and continuous improvement techniques, while also contributing to our overall efforts to reduce costs."
Meanwhile, AngioDynamics has ticked up its full-year projections for 2014, expecting up to 3% growth for $353 million in revenue and boosting its earnings-per-share outlook by two pennies to 67 cents.
The company has been plugging away with its fleet of vascular access and surgical devices this year, notching regulatory victories over the past three months to the delight of investors. AngioDynamics' shares are up almost 60% since April, trading at around $15.50 on Thursday morning.
- read the announcement