Financial Report: West 3Q

West 3Q09

3Q Revenues: $258.9 million (-1%)

3Q Earnings: $17.2 million (+27%)

YTD Revenues: $762.3 million (-5%)

YTD Earnings: $52.3 million (-24%)

Comments: Pharmaceutical Systems segment sales for the third quarter of were $198.1 million (+4%). Unfavorable foreign exchange accounted for 4%. H1N1 flu vaccination-related sales were $9.7 million in the quarter. Tech Group sales were $62.9 million (-8%).

The company also announced operational restructuring plans for its Tech Group and Pharmaceutical Systems segments. The Tech Group will consolidate manufacturing operations and support functions to better align capacity to contract manufacturing activity. Approximately 65 positions will be eliminated, which is expected to cost between $2 – $3 million. The company expects to generate annual operating cost savings of approximately $2 million in 2010 and $4 million once the restructuring is complete.

Under the Pharmaceutical Systems restructuring, the company will exit certain specialized lab service offerings; retire information technology applications and associated support; and abandon plans to expand its U.S. metals facility. Approximately 35 positions are being eliminated. The costs is expected to be $6 – $7 million, with cost savings in the range of $4.0 million annually.