Integra LifeSciences Announces Planned Restructuring of its European Operationshttp://biz.yahoo.com/pz/050601/79135.html``We recently began to review our European manufacturing and distribution operations for possible restructuring,' said Stuart M. Essig, Integra's President and Chief Executive Officer. ``We expect that the pending review of our manufacturing and distribution operations will lead to a restructuring that will affect most of our European facilities. We expect to reinvest the bulk of the savings from these activities in further building out our European sales, marketing and distribution organization, and integrating the Newdeal group's business with our existing sales and distribution network.'...The Company may incur significant costs over the remainder of this year in connection with employee severance, legal, and other items related to the restructuring. Based on management's preliminary assessment, Integra LifeSciences estimates that such costs will not exceed $8 million in the aggregate. We currently expect these charges to occur over the remainder of 2005 and to impact our 2005 GAAP reported earnings per diluted share guidance by approximately $0.16. Our adjusted earnings per share guidance which excludes charges related to acquisitions, integrations and restructurings remains unchanged in a range of $1.33 to $1.38 in the full year 2005 and $0.28 to $0.30 in the second quarter. On a GAAP reported basis, we expect earnings per share in 2005 to be within a range of $1.15 to $1.20 in the full year and $0.16 to $0.18 in the second quarter.While we expect a positive impact of the restructuring activities with projected cost savings of approximately $3 million per year for 2006 and beyond, such results remain uncertain. We also expect to invest some of the benefit of the restructuring activities in expanding our European sales and marketing activities. For this reason, our expectations for earnings per diluted share in 2006 remain unchanged in a range of $1.65 to $1.75. Our expectation ranges for 2006 earnings per diluted share do not reflect the impact of expensing stock options beginning January 1, 2006 under the accounting standard recently issued by the Financial Accounting Standards Board (FASB).
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