MELBOURNE, Australia—Ansell Ltd.'s global restructuring of its business units has resulted in a drop in net income for the fiscal year ended June 30, although sales were up.
Revenues rose 16 percent over the 2013 fiscal year to $1.59 billion while underlying net profit came in at $157 million. However, income was impacted by a $115 million write off related to the restructuring plan, which dropped the company's profit to $42 million, down 70 percent from the prior year.
The one-time charges for the restructuring are largely non-cash.
Ansell's Industrial business, its largest, had sales growth of more than 10 percent with organic growth of 1 percent overall and 3 percent in its hand protection segment.
Its Medical and Single Use businesses both had strong sales for the fiscal year. Medical revenue rose about 20 percent while Single Use jumped 68 percent. Both benefited from the recent acquisition of BarrierSafe Solutions International and strong organic growth, company officials said.
Sales in the firm's Sexual Wellness business declined 7.4 percent, partially because of lower mature brand sales impacted by increased competition in Brazil and China and a revision in worldwide distribution agreements.
Ansell's global restructuring program was put in place in July to create a more efficient and profitable business, company officials said.
Topping the list is the eventual closure of the firm's U.S. Hawkeye glove operation in Eupora, Miss. That decision was made because of decreased demand in the U.S. for the specialty gloves produced at the factory, a spokesman said.
A determination has not been made on when the plant will close.
Also included in the plan are relocation of the company's condom headquarters in Australia to Brussels; closure of a Malaysian medical goods production plant and moving capacity to lower cost facilities in southern Malaysia and Sri Lanka; and cutting 30 brands, 100 products and 20 legal entities.
The cutbacks will lead to the elimination of about 250 jobs in the next year, the company said.