QIAGEN To Record Restructuring Charge Of About $0.22-0.23 Per Share In Q4

(RTTNews) - QIAGEN N.V. (QGEN) announced a series of initiatives are well underway to support faster sales momentum while delivering margin gains. The key actions are being implemented in the fourth quarter of 2016 and into 2017. The initiatives involve closing the Valencia, California, site as well as plans to spin off certain activities at the site in Hombrechtikon, Switzerland, before closure; expanding the use of shared service centers and global centers of excellence to bring together activities at key locations; streamlining selected organizational structures to reduce complexity; realigning the roles of global and regional marketing teams and also creating new global centers of excellence for certain marketing functions; and optimizing sales channels to better engage with customers, including greater use of digital channels.

The company said a pre-tax restructuring charge of approximately $75 million (or about $0.22-0.23 per share after taxes) is planned for the fourth quarter of 2016, including approximately $35 million of non-cash items. Furthermore, pre-tax restructuring charges of approximately $10 million (or about $0.03 per share after taxes) are planned to be taken over the course of 2017. The restructuring charges will not be excluded from adjusted results.

For the full-year 2016, QIAGEN continues to expect sales growth of about 6-7% CER, which is based on achieving the prior guidance for about 6% CER growth and the addition of about $10 million of first-time sales during the second half of the year from the Exiqon acquisition. For the full-year 2016, QIAGEN expects to achieve its previously announced guidance for adjusted EPS of about $1.10-1.11 CER on an underlying basis, but for adjusted results to be approximately $0.87-0.88 CER per share when including the expected restructuring charge of about $0.22-0.23 per share to be recorded in the fourth quarter.

For the fourth quarter of 2016, net sales are expected to rise approximately 8% CER. Adjusted EPS is expected to be about $0.38 CER on an underlying basis, and about $0.15-0.16 CER including the expected restructuring charge.

For full-year 2017, QIAGEN is providing initial guidance for net sales growth of approximately 6-7% CER, and for adjusted EPS of approximately $1.25-1.27 CER per share. This outlook for adjusted EPS excludes the expected $0.03 per share of restructuring costs to be taken in 2017.