Abbott Labs Plans Restructuring Due to Changes in Covid-19 Testing Demand
04 June 2021 - 7:18AM
Dow Jones News
By Stephen Nakrosis
Abbott Laboratories on Thursday said it approved a restructuring
plan last month "to align its manufacturing network for Covid-19
diagnostic tests with recent changes in projected testing
demand."
In a filing with the U.S. Securities and Exchange Commission,
the company said the changes in projected testing demand have been
driven by several factors, including reductions in cases in the
U.S. and other major developed countries and accelerated rollout of
Covid-19 vaccines globally.
The company also said it estimates pretax costs to implement its
plan to be about $550 million to $700 million. "The costs are
expected to be incurred during the remainder of 2021 with the
majority of the costs expected to be recorded in the second quarter
of 2021," Abbott said, adding "The costs will be treated as
specified items."
Earlier this month, Abbott updated to its financial outlook for
the full year. At that time, Robert B. Ford, the company's
president and chief executive, said "We've recently seen a rapid
decline in Covid-19 testing demand and anticipate this trend will
continue, which led us to adjust our full-year guidance."
--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
June 03, 2021 17:18 ET (21:18 GMT)
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