Quarterly report pursuant to Section 13 or 15(d)

Restructuring

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Restructuring
9 Months Ended
Jun. 30, 2012
Restructuring  
Restructuring

17.         Restructuring

 

During the three months ended June 30, 2012, Hillenbrand incurred $2.4 of restructuring costs ($1.4 at the Batesville business platform and $1.0 at the Process Equipment Group).  These costs consisted of $1.2 of termination benefits at Batesville and the Process Equipment Group classified as cost of goods sold, as well as $1.2 of operating expenses that consisted of termination benefits at Batesville and costs related to the consolidation of manufacturing facilities in the Process Equipment Group.  Restructuring charges for the nine-month period ended June 30, 2012 totaled $3.4 at Batesville and $3.8 at the Process Equipment Group.  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 capacity to ensure they are making the products their customers require in the most efficient manner possible.  Earlier in the year Batesville consolidated its first and second shifts at one of its plants.  In the third quarter, Batesville incurred $1.4 of restructuring charges related to a workforce reduction.

 

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