Itron Expects To Consolidate Several Facilities, Reduce Global Workforce

(RTTNews) - Itron Inc. (ITRI) said that it expects to close or consolidate several facilities and reduce its global workforce as a result of the restructuring. Certain restructuring projects will begin immediately and it target to substantially complete the activities by the end of 2018. It forecasts annualized savings of approximately $40 million upon completion of restructuring projects.

The company expects to incur pre-tax restructuring charges of approximately $55 million to $65 million related to the projects. As many of employees are represented by unions or works councils, any specific employment actions related to the projects may be subject to legal requirements, including prior consultation on the projects with work councils and authorities in some of the countries in which Itron operates.

Net income for the second-quarter was $20 million or $0.52 per share, compared with a net loss of $14 million, or $0.37 per share, reflecting the strong performance in revenue and gross margin.

Non-GAAP net income for the quarter was $25 million or $0.65 per share, compared with a net loss of $15 million, or $0.39 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the second-quarter grew 9 percent to $513 million compared with $471 million in 2015. Wall Street expected revenues of $478.7 million. Changes in foreign currency exchange rates unfavorably impacted revenue by approximately $7 million for the quarter. Excluding the impact of foreign currency, revenues increased $49 million, or 10 percent, driven by growth in all segments, particularly in the Electricity and Gas segments.

Looking ahead for the full year 2016, the company expects Non-GAAP earnings per share to be between $2.20 and $2.45, revenue of $1.95 billion - $2.0 billion. Wall Street currently is looking for fiscal year 2016 earnings of $2.17 per share on annual revenues of $1.95 billion.