Esco Tech to shut Illinois plant; cuts FY earnings forecast
Oct 9 (Reuters) - Engineered products maker Esco Technologies Inc said it will shut an Illinois plant as it looks to improve margins in its test segment and take a related $3 million charge.
The company also cut its full-year earnings forecast to between $1.70 and $1.73 per share due to certain orders being pushed back and higher costs in its utility unit.
It earlier forecast 2012 earnings to be flat with the $1.95 per share it earned in 2011. Analysts were expecting earnings of $1.90 per share, according to Thomson Reuters I/B/E/S.
Esco plans to consolidate the test segment's U.S. manufacturing facilities at three locations, resulting in the closure of its Glendale Heights, Illinois plant.
The company, which expects the restructuring to yield annual savings of about $3 million from 2014, will take the charge over the next three to six months.
Esco did not reveal the job cuts, if any, that would result from the restructuring.
Shares of the company were down about 2 percent at $36.98 in extended trade. They closed at $37.61 on the New York Stock Exchange on Tuesday.