Canadian healthcare company MDS of Mississauga, Ontario, is restructuring in an effort to increase profitability at MDS Pharma Services and MDS Analytical Technologies.
The company estimates that its plan will yield annual pretax savings of approximately $20 million and result in a net reduction of approximately 210 employees.
Pretax restructuring charges are expected to be approximately $18 million, with the majority of the charges recorded in MDS' fiscal third quarter (end-July 31). The company also expects to record a pretax facility-related asset impairment charge of approximately $10 million related to its MDS Pharma Services Montreal site.
The expected after-tax amount of restructuring and asset impairment charges will reduce net income by approximately $20 million in fiscal 2008 (end-October 31). MDS is scheduled to release its fiscal third-quarter financial report on September 4.
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