Anonymous
Gateway closes plant, cuts jobs
Wed Sep 3 15:13:16 2003
67.1.155.185

Gateway closes plant, cuts jobs

Computer maker will take charge of $120M to $160M as it looks to save
$115M to $130M a year.

http://money.cnn.com/2003/09/03/technology/gateway.reut/index.htm
 
September 3, 2003: 11:46 AM EDT

SAN FRANCISCO (Reuters) - Gateway Inc. said Wednesday it will overhaul
its sourcing and logistics by closing a manufacturing facility and
consolidating some operations, eventually saving the computer maker
$115 million to $130 million a year.

Shares of Gateway (GTW: up $0.24 to $6.32, Research, Estimates) rose 4
percent in morning trade on the New York Stock Exchange.

Poway, Calif.-based Gateway, which has posted losses in 10 of the last
11 quarters, said it expects to book related expenses of $120 million
to $160 million. The costs will be recognized primarily over three
quarters, it said.

Gateway said it will close a manufacturing complex in Hampton, Va.,
and cut staffing at two facilities in South Dakota. The company also
said it would explore other opportunities to outsource operations.

The company has moved to broaden its product line to include gadgets
and flat-screen televisions amid fierce competition with leading PC
makers Dell Inc (DELL: up $0.46 to $34.05, Research, Estimates). and
Hewlett-Packard Co (HPQ: up $0.32 to $20.52, Research, Estimates).

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