To download the latest issue
Nov 1st, 2013
FLIR details site closures as US government sales evaporate
Confusion over the ongoing impact of sequestration behind lowered sales guidance at imaging company.
Infrared imaging company FLIR Systems has detailed the consolidation plans that will see several site closures in the US and Europe in a bid to improve profit margins. The company also announced additional cost-cuts as it battles an unprecedented dip in activity from Washington, DC.
During an investor conference call to discuss the company’s latest financial results, CEO Andy Teich and his senior management team expanded on their October 15 announcement that up to six of its smaller facilities would close.
FLIR’s CFO Anthony Trunzo said that plans to close three US facilities were already well under way, with two of those site closures expected to be completed by the end of the year.
Because of different workplace rules, its European closures will inevitably take longer than that, and Trunzo said: “Three of the facilities we are proposing to close are in Europe, and require us to consult with local works councils prior to moving ahead.” However, none of those facilities is particularly large, and Trunzo is expecting consultations to conclude by early 2014, after which the proposed relocations should proceed.
Thomas Surran, recently appointed as the president of FLIR’s commercial systems division after Teich’s promotion to CEO, said that three of the affected facilities were in his division, and confirmed that there would be staff reductions.
William Sundermeier is the president of FLIR’s government systems division, which has been hit by a sharp slowdown in US government spending. Providing more detail, he said that changes to the surveillance business unit within that division would include the consolidation of the company’s two main laser businesses in Bozeman, Montana.
In addition, two domestic optics manufacturing operations would be consolidated into FLIR’s larger Pittsburgh facility, while several engineering and production teams in Sweden would be relocated to the company’s site in Täby.
On top of that, FLIR is to switch its radiation detector operations in Germany to Oak Ridge, Tennessee, while in the area of integrated systems a facility in Alpharetta, Georgia, will close and its operations moved to Elkridge, Maryland.
To read more: http://optics.org/news/4/10/46
More IMAGING news