Quarterly report pursuant to Section 13 or 15(d)

Restructuring

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Restructuring
 6 Months Ended
Mar. 31, 2012
Restructuring  
Restructuring

16.       Restructuring

 

During the three months ended March 31, 2012, Hillenbrand incurred $4.8 in restructuring costs at the Batesville business platform ($2.0) and the Process Equipment Group ($2.8).  These costs consist of termination benefits ($2.3) at Batesville and Process Equipment Group classified as cost of goods sold, as well as operating expenses ($2.5) related to the consolidation of manufacturing facilities in the Process Equipment Group.  This consolidation included the write-down to fair value of certain property that is classified as held for sale.  Future charges related to these restructurings are not expected to be significant.

 

Batesville management consistently sizes their operations to respond to changing market conditions and consumer preferences, and continuously evaluates capacities to ensure they are making the caskets their customers require in the most efficient manner possible.

 

We continue to see progress in the implementation of Hillenbrand Lean Business principles in our Process Equipment Group.  This past quarter we strategically realigned the Process Equipment Group through the consolidation of certain manufacturing facilities.  This resulted in the closure of one manufacturing plant.  We believe this action will allow the Process Equipment Group to more efficiently meet customer needs, while continuing to provide the same high-quality products and services.