Zoetis to cut jobs, costs after flat earnings report

May 6, 2015

43cd244fdc3e229fc8b38a2abdf896df_clientImage_300x200_medium_original_1

From WATTAgNet:

Zoetis reported flat revenue in the first quarter of 2015, and announced a comprehensive operational efficiency initiative to enhance its long-term competitive position and profitability, which includes slashing $300 million in annual costs by 2017 and cutting at least 20 percent of its workforce.

The company reported revenue of $1.1 billion for the first quarter of 2015, which was flat compared with the first quarter of 2014.

Net income for the first quarter of 2015 was $165 million, or $0.33 per diluted share, an increase of 6 percent compared with the first quarter of 2014. Adjusted net income for the first quarter of 2015 was $207 million, or $0.41 per diluted share, an increase of 8 percent. Adjusted net income for the first quarter of 2015 excludes the net impact of $42 million, or $0.08 per diluted share, for purchase accounting adjustments, acquisition-related costs and certain significant items. On an operational basis, adjusted net income for the first quarter of 2015 increased 14 percent, with foreign currency having a negative impact of 6 percentage points.

Zoetis said it would close 10 manufacturing plants, eliminate layers of management and abandon some of its 300 product lines that aren’t performing well. However, the company said it would not cut back on its sales force or large U.S. plants.

1st Qtr: Zoetis’ Sales Unchanged, Net Income Up 6%

To view the complete report, click here. Zoetis Inc. (NYSE:ZTS) today reported its financial results for the first quarter of 2015 and announced a comprehensive operational efficiency initiative to enhance its long-term competitive position and profitability. The company also updated its …

Zoetis Inc. to pare down workforce, sell 10 manufacturing sites

KALAMAZOO, MI — Zoetis Inc., an international animal-health drugmaker, which employs about 1,000 people at its research and development headquarters in Kalamazoo, will cut up to 25 percent of its total workforce. On Tuesday, the company released its plans to cut $300 millionin annual costs by 2017, and will shutter or sell 10 manufacturing sites and reduce its geographical divisions from four to two.

Zoetis lowers 2015 revenue outlook

Animal-health company Zoetis Inc. announced plans Tuesday to cut $300 million in costs, including laying off at least 20% of its 10,000 employees, as it reported flat revenues in the first quarter. The company said it would shutter 10 manufacturing plants, eliminate layers of management and abandon some of its 300 product lines that aren’t selling well.