The reductions will result in total pre-tax charges of approximately $450 million to $475 million, or $0.20 to $0.22 per diluted share. These mostly cash charges will be recorded primarily as restructuring expenses, with a portion recorded through other lines of the income statement. Approximately $275 million to $300 million will be recorded in the fourth quarter of 2007 with the remainder expected to be recorded throughout 2008 and 2009.
The Company plans to restructure several businesses and product franchises in order to leverage resources, strengthen competitive positions, and create a more simplified and efficient business model. Key components of the business restructuring plan include:
-- The Peripheral Interventions and Interventional Cardiology businesses
will be combined under a single management structure to help create a
more integrated business focused on interventional specialists, while
enhancing technology and management efficiencies.
-- The Electrophysiology business will be integrated with the Cardiac
Rhythm Management business to better serve the needs of
electrophysiologists by creating a more efficient organization.
-- The Oncology business and its four franchises will be restructured.
Three will be integrated into other businesses within Boston
Scientific, and the Oncology Venous Access franchise will be combined
with the Fluid Management business.
-- The Company is actively seeking buyers for the combined Fluid
Management/Oncology Venous Access business, as well as its Cardiac
Surgery and Vascular Surgery businesses. The Company has announced it
has entered into a definitive agreem
|SOURCE Boston Scientific|
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