April 2, 2010 (FinancialWire) — CommScope, Inc. (NYSE: CTV), a firm that provides infrastructure solutions for communications networks, said it plans to discontinue operations at its Connectivity Solutions Manufacturing, Inc. subsidiary in Omaha, Nebraska and relocate manufacturing to one or more existing CommScope facilities in North America.

The North Carolina-based company currently employs around 400 people in its CSMI subsidiary in Omaha, all of whom will be affected by the manufacturing relocation. Another 70 employees in non-manufacturing corporate functions, who currently are housed in the CSMI facility, are expected to relocate to a new Omaha location prior to the plant’s closing.

In January, the company said it planned to analyze options for its Omaha manufacturing facility and has recently finalized its review. The company said it expects annualized pretax savings of around $18 million to $22 million upon completion of relocation and closure of the facility in late 2011.

Around one-half of these annualized pretax savings are expected to be realized in 2011, primarily in the second half of the year, according to the company.

The company said it expects to incur total pretax restructuring costs of $45 million to $53 million to complete this facility relocation. Of this amount, cash costs are estimated to be $35 million to $40 million.

CommScope said it expects to recognize the impairment charges and certain employee-related charges totaling around $20 million in the first quarter of 2010. The remaining charges are expected to be recognized between April 2010 and December 2011. The company does not anticipate any material increase in capital spending to complete this relocation.

(For more information technology sector articles go to http://www.financialwire.net/?s=infrntntchnlgy)

(For more business restructuring articles go to http://www.financialwire.net/?s=restrctrng)

FinancialWire(tm) is committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” (http://www.financialwire.net/news-alerts/).

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) website (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

[infrntntchnlgy] [restrctrng]

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.