Merix to lay off 180; Q2 sales down, steep loss
Portland Business Journal - by Aliza Earnshaw Business Journal staff writer
Printed circuit board maker Merix Corp. will lay off 180 people from its North American manufacturing plants, and close one of them by March 1, in an effort to control costs in the face of declining revenue.
Merix (NASDAQ: MERX), headquartered in Beaverton, reported second-quarter revenue of $97.4 million, down from $103.7 million in the same quarter last year, and down from $99.4 million in the first quarter of this year. That declined both compared with last year's second quarter and with this year's first quarter.
Merix lost $5 million, or 24 cents per share, during the second quarter. That compares with a $1.8 million profit, or 9 cents per share, during the same quarter last year, and a loss of $3.6 million, or 17 cents per share, during Merix's first quarter. The first quarter of the current fiscal year contained one extra week, boosting revenue. Accounting for that discrepancy, Merix's second quarter actually showed revenue improvement over first quarter.
Merix characterized the year-over-year revenue decline as a result of normal cyclical slowdown in the printed circuit board market in North America. The decline in revenue, set against fixed costs, resulted in the profit decline.
Merix will close down its Wood Village plant, located to the east of Portland, by March 1. The company will keep its original factory in Forest Grove, as well as its plant in San Jose, Calif., and two others in China.
Merix expects to save $11 million per year through the layoff of 180 North American workers. The company had 4,120 employees, 120 of them temporary, at the end of May last year. Merix did not say whether all 180 jobs would be cut in Oregon, or whether some would be cut in San Jose. The company said that most of the job cuts will be in manufacturing.
Merix said it will save an additional $7 million per year by closing down its Wood Village plant. The company expects a further savings of $1 million to $1.5 million per quarter from the previously announced shutdown of its Hong Kong plant.
Merix expects to spend $2 million in cash over the next six months on severance expenses and transportation costs for shipping equipment to Asia from its Oregon operations.
aearnshaw@bizjournals.com | 503-219-3433
Visit DiversityJobs.com for information on Diversity in the workplace
Printed circuit board maker Merix Corp. will lay off 180 people from its North American manufacturing plants, and close one of them by March 1, in an effort to control costs in the face of declining revenue.
Merix (NASDAQ: MERX), headquartered in Beaverton, reported second-quarter revenue of $97.4 million, down from $103.7 million in the same quarter last year, and down from $99.4 million in the first quarter of this year. That declined both compared with last year's second quarter and with this year's first quarter.
Merix lost $5 million, or 24 cents per share, during the second quarter. That compares with a $1.8 million profit, or 9 cents per share, during the same quarter last year, and a loss of $3.6 million, or 17 cents per share, during Merix's first quarter. The first quarter of the current fiscal year contained one extra week, boosting revenue. Accounting for that discrepancy, Merix's second quarter actually showed revenue improvement over first quarter.
Merix characterized the year-over-year revenue decline as a result of normal cyclical slowdown in the printed circuit board market in North America. The decline in revenue, set against fixed costs, resulted in the profit decline.
Merix will close down its Wood Village plant, located to the east of Portland, by March 1. The company will keep its original factory in Forest Grove, as well as its plant in San Jose, Calif., and two others in China.
Merix expects to save $11 million per year through the layoff of 180 North American workers. The company had 4,120 employees, 120 of them temporary, at the end of May last year. Merix did not say whether all 180 jobs would be cut in Oregon, or whether some would be cut in San Jose. The company said that most of the job cuts will be in manufacturing.
Merix said it will save an additional $7 million per year by closing down its Wood Village plant. The company expects a further savings of $1 million to $1.5 million per quarter from the previously announced shutdown of its Hong Kong plant.
Merix expects to spend $2 million in cash over the next six months on severance expenses and transportation costs for shipping equipment to Asia from its Oregon operations.
aearnshaw@bizjournals.com | 503-219-3433
Visit DiversityJobs.com for information on Diversity in the workplace
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