As previously disclosed, Hill-Rom recorded two special charges in the fourth quarter totaling $20.5 million (pre-tax) related to streamlining the organization and improving profitability in our MEMS business. Of this amount, $13.8 million will be non-cash in nature. Annual savings resulting from these specific actions are expected to approximate $18 million, most of which will impact 2009. These savings are reflected in financial guidance.
Commenting on the previously announced acquisition of Liko on October 1, 2008, Soderberg stated, "We have now operated Liko for nearly six weeks, and we continue to be very enthusiastic about the opportunities to enhance patient and caregiver outcomes through the combination of Liko with Hill-Rom. The acquisition, which is expected to be accretive in the first year, is highly consistent with our strategies to expand both our global footprint and presence across the care continuum."
"We are reaffirming financial guidance introduced at our investor
conference early last month. Our outlook anticipates more conservative
organic revenue growth reflecting moderation of some customers' purchasing
patterns, recovery of credit markets occurring early in calendar 2009, and
recessionary pressures continuing until mid-2009. Nevertheless, we expect
margin expansion and productivity initiatives, combined with the accretive
|SOURCE Hill-Rom Holdings, Inc.|
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