Monday, November 28, 2005

Merck Announces Initial Steps In Global Restructuring Program

Merck digs in...

WHITEHOUSE STATION, N.J.--(BUSINESS WIRE)--Nov. 28, 2005--Merck & Co., Inc. (NYSE:MRK)

-- Initial Phase of Cost Reduction Program Expected to Yield Cumulative Pretax Savings of $3.5 Billion to $4.0 Billion in 2006-2010

-- Costs Associated with Restructuring Program Expected to be Substantially Complete by 2008

-- Elimination of 7,000 Positions Expected by End of 2008

-- Five of 31 Manufacturing Facilities Expected to be Closed or Sold

-- Full-Year 2005 EPS Expected to be $2.47 to $2.51 Excluding Charges, with Reported 2005 EPS of $2.04 to $2.10

-- Full-Year 2006 EPS Expected to be $2.28 to $2.36 Including Approximately $0.07 Impact from Stock Option Expensing but Excluding Restructuring Charges, with Reported 2006 EPS of $1.98 to $2.12


Merck & Co., Inc. (NYSE:MRK) today announced the first phase of a global restructuring program designed to reduce the Company's cost structure, increase efficiency, and enhance competitiveness. The initial steps will include the implementation of a new supply strategy by the Merck Manufacturing Division (MMD), which is intended to create a leaner, more cost-effective and customer-focused manufacturing model over the next three years.

"The actions we are announcing today are an important first step in positioning Merck to meet the challenges the Company faces now and in the future," said Richard T. Clark, chief executive officer and president of Merck & Co., Inc. "We are engaged in an ongoing effort to enhance efficiencies throughout the Company and improve the way we discover, develop, manufacture and market our medicines and vaccines and ensure that we get them to patients who need them as quickly, safely and efficiently as possible. Going forward, we also plan to pursue improved approaches to R&D, and marketing and sales. We look forward to discussing our initial plans at our Annual Business Briefing on December 15."

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