• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Checkpoint Systems revenues down 10.8% in Q1 FY'12

04 May '12
5 min read

“I also will be taking a hard look at the Company's current reporting and decision-making processes to ensure that each delivers the efficiency, speed and flexibility needed for success, while making the enterprise more nimble. As we move forward, Checkpoint will remain committed to customers, innovation, technology and talent, as well as building sustainable value for our shareholders and other stakeholders.”

Mr. Babich continued, “The first quarter proved to be more challenging than we expected and that is why we are taking these important steps. The improved order flow the Company experienced in the fourth quarter 2011 did not extend into the first quarter. Ongoing economic uncertainty and unpredictable retailer behavior continue to impact our results and remain a concern for the immediate future.

“As a result, during the quarter, Checkpoint initiated additional cost-reduction measures, valued at approximately $8 million annually, on top of the measures announced as part of the Company's expanded Global Restructuring Plan late last year.

“These combined initiatives are expected to reduce Checkpoint's cost structure by approximately $67 million annually by 2013. Despite the challenging environment, the Board and I believe in the prospects for Checkpoint's underlying business and look forward to positioning the global enterprise for a new era of growth.”

Expanded Global Restructuring Plan
On October 18, 2011 the Company announced an expanded Global Restructuring Plan focused on further reducing overall operating expenses. This plan was further expanded in the first quarter of 2012.
The first phase of this plan was implemented in the third quarter of 2011 with the remaining phases expected to be substantially complete by the end of 2013

By 2013, the combined Global and SG&A Restructuring Plans, including the additional cost reduction initiatives announced in the first quarter of 2012, will produce annualized run rate savings of approximately $67 million with a cost of approximately $56 million, of which approximately $9 million is non-cash.

In 2011, $17 million of the savings were realized; in 2012 approximately $35 million of the savings will be achieved with the remaining savings of approximately $15 million to be achieved in 2013. Remaining restructuring cost is approximately $17 million, with the majority of the expense expected to be recognized in 2012.

Checkpoint Systems is a global leader in shrink management, merchandise visibility and apparel labeling solutions.

Checkpoint Systems Inc

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search