Healthcare Industry News: Beckman Coulter
News Release - January 10, 2007
Beckman Coulter Streamlining Operations in California; Will Relocate Palo Alto FunctionsFULLERTON, Calif., Jan. 10 (HSMN NewsFeed) -- Beckman Coulter, Inc. (NYSE: BEC ) announced today that it will close its Palo Alto operations by the end of 2008. Functions that are currently in Palo Alto will be relocated to other Beckman Coulter facilities or areas near by. The action is designed to help the company reduce costs and improve its ability to recruit and retain skilled employees.
The majority of activities in Palo Alto are associated with development and manufacturing of centrifuges, a key product line in the company's Discovery and Automation product area. The operations will be relocated to the greater Indianapolis, Ind., area, which is home to other Beckman Coulter Discovery and Automation products. Approximately 220 employees are currently employed in Palo Alto.
According to Pam Miller, senior vice president of Supply Chain Management, "Closing our facility in Palo Alto was a difficult decision because the people there have always done excellent work and we have a long history in the area. By relocating our operations to the Indianapolis area, we can work aggressively to manage our costs and maintain our leadership position in centrifugation, an important asset of the company. Also, we're able to take a longer-term view of work force planning."
Beckman Coulter cited several factors for choosing the greater Indianapolis area for the relocation. Among the most important were the ability to leverage the company's existing presence in Indianapolis and the region's favorable local business environment and lower total cost of operations. Other reasons include access to a local work force with strong skills in both engineering and manufacturing; the state of Indiana's strategic intent to focus on life sciences and advanced manufacturing; and the area's central location, which helps improve the efficiency of product distribution.
The action will have no impact on Beckman Coulter's 2006 results. More information about the relocation's financial impact in 2007 and beyond will be provided during the company's upcoming fourth quarter and year end 2006 conference call.
Beckman Coulter, Inc. is a leading manufacturer of biomedical testing instrument systems, reagents and supplies that simplify and automate laboratory processes. Spanning the biomedical testing continuum -- from pioneering medical research and clinical trials to laboratory diagnostics and point-of-care testing -- Beckman Coulter's 200,000 installed systems provide essential biomedical information to enhance health care around the world. The company, based in Fullerton, California, reported 2005 annual sales of $2.44 billion, with 71.5 percent of this amount generated by recurring revenue from supplies, test kits, services and operating-type lease payments. For more information, visit www.beckmancoulter.com.
Source: Beckman Coulter
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