Published January 29, 2013
Boston Scientific (BSX) said Tuesday that its board has agreed to expand the company’s 2011 restructuring program, which includes cutting another 1,000 jobs this year.
The Natick, Mass.-based medical device maker said it anticipates eliminating 900 to 1,000 people worldwide in 2013 through a combination of attrition and targeted headcount reductions, bringing total job cuts since 2011 to between 2,100 and 2,400.
The company's overhaul is expected to reduce annual operating expenses by an incremental $100 million to $115 million by the end of 2013.
The announcement came as Boston Scientific reported weaker quarterly earnings on a decline in sales, weighed down by higher expenses. Fourth quarter earnings fell to $60 million, or 4 cents a share, compared with a year-earlier $107 million, or 7 cents.
Excluding one-time items, Boston Scientific said it earned 11 cents a share, matching average analyst estimates in a Thomson Reuters poll. Revenue slipped to $1.82 billion from $1.85 billion last year, but trumped the Street’s view of $1.76 billion.
“We are pleased but not satisfied with our improved performance in the quarter," said Boston Scientific CEO Mike Mahoney.
Looking ahead, the manufacturer of heart stents and pacemakers said it expects first-quarter EPS to be in the range of 14 cents to 17 cents, excluding one-time items, on sales between $1.74 billion to and $1.82 billion.
The consensus is calling for current-quarter EPS of 10 cents on revenue of $1.79 billion.
For the full year, it anticipates non-GAAP earnings between 64 cents and 70 cents on sales of $7.05 billion to $7.35 billion. The Street is looking for fiscal 2013 EPS of 43 cents on revenue of $7.12 billion.
"I am confident we are taking the critical steps that are needed to return our company to long-term growth," Mahoney said.
Shares of Boston Scientific climbed nearly 5% Tuesday to a 52-week high of $7.43.