Pump and compressor manufacturer Gardner Denver Inc. outlined a restructuring initiative to optimize its global manufacturing organization, aiming to cut its operating costs and increase marginal income. The changes will primarily address the group’s European Industrial Products Group, where it will consolidate manufacturing and cut employment totals. The company said these efforts also aim to increase the efficiency of the plants and “provide additional resources to invest in profitable growth.”
Gardner Denver’s Industrial Products group supplies
Specific changes were not made clear. Gardner Denver said it would begin to implement the restructuring plan over the next several months, concluding the effort by the end of 2015.
"Gardner Denver has a solid track record of margin expansion and execution supported by the principles of the Gardner Denver Way," stated interim CEO and CFO Michael M. Larsen. "Today, we are announcing a series of strategic actions and plans designed to ensure that our company remains financially well-positioned and appropriately structured for profitable, long-term growth in our Industrial Products Group in Europe."
Gardner Denver produces a range of industrial products, notably compressors, liquid ring pumps, and blowers it supplies to industrial, medical, environmental, transportation, and process manufacturing sectors. Its pumps are used in petroleum refining, and its other fluid-transfer equipment like loading arms and dry break couplers are used in chemical processing, petroleum refining, and food processing industries.
The group predicted its new initiatives would generate annual, pre-tax savings of $10-$15 million in 2013, and $35-$40 million by 2016.
The company had 2011 revenues of approximately $2.4 billion.
"After extensive analysis and consideration, we believe these restructuring initiatives will enhance the company's prospects for growth and value creation, while ensuring that our businesses continue to meet and exceed the needs of customers every day.”
Larsen noted with regret that the restructuring will affect many Gardner Denver employees. “We recognize their contributions to the achievements of our business, and are committed to treating them fairly and with respect throughout this process," Larsen stated.