Ballard Power Systems: Restructuring Streamlines Cost Base
Ballard Power Systems announced an organizational restructuring, resulting in the elimination of 85 positions at its Burnaby, BC and Lowell, MA locations, representing approximately 20% of its workforce.
This restructuring narrows Ballard's research and product development programs to focus on commercial priorities and also reduces the company's administrative support and overhead positions.
John Sheridan, President and CEO said that "while this was a difficult decision given the people implications, this move to a leaner, lower cost organizational structure, is a key step in Ballard's drive to profitability."
A third quarter charge of approximately $4 million will be recorded for related severance and restructuring costs, which is expected to be offset by savings in 2009. On a full year basis, these organizational changes will result in cost savings of approximately $10 million annually.
About Ballard Power Systems
Ballard Power Systems is recognized as a world leader in the design, development, manufacture and sale of clean energy fuel cell products. Ballard's mission is to accelerate fuel cell product adoption. To learn more about what Ballard is doing with Power to Change the World®, visit www.ballard.com.
This release contains forward-looking statements, including estimated future expenses and cost savings contained in our outlook, which are provided to enable external stakeholders to understand our expectations as at the date of this release and may not be appropriate for other purposes. These forward-looking statements are based on the beliefs and assumptions of Ballard's management and reflect Ballard's current expectations as contemplated under section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such assumptions relate to Ballard's financial forecasts and expectations regarding its product development efforts, manufacturing capacity, and market demand, and include matters such as generating new sales, producing, delivering and selling the expected number of units, and controlling its costs.
These statements involve risks and uncertainties that may cause Ballard's actual results to be materially different, including, without limitation, the rate of mass adoption of its products, product development delays, changing environmental regulations, its ability to attract and retain business partners and customers, its access to funding, increased competition, its ability to protect its intellectual property, changes in its customers' requirements, foreign exchange impacts on its net monetary assets and its ability to provide the capital required for product development, operations and marketing. For a detailed discussion of these risk factors and other risk factors that could affect Ballard's future performance, please refer to Ballard's most recent Annual Information Form. Readers should not place undue reliance on Ballard's forward-looking statements and Ballard assumes no obligation to update or release any revisions to these forward looking statements, other than as required under applicable legislation.
Source: Ballard Power Systems