X-Rite sales down, job cuts planned

GRAND RAPIDS, Mich. (WOOD) - X-Rite announced Thursday the company will fall short of 2008 sales estimates and planned to cut approximately 90 jobs.

The company said sales were down about 7.7 percent in 2008 to about $261 million.

"We have seen an accelerating decline in demand, particularly in the fourth quarter of 2008," X-Rite CEO Thomas Vacciano said in a release.

The company announced what its calling a "significant new profit improvement plan."

The plan would deliver up to $20 million of savings, while the company would take a restructuring charge of $3.5 million in 2009.

Part of the plan includes accelerating the closure of X-Rites Viptronic group in Brixen, Italy announced in November 2008. That closure is in addition to the job cuts announced today.

X-Rite also plans to reduce work schedules and furloughs for some employees.

Executives will have their compensation cut as well.

X-Rite plans to suspend its 2009 bonus programs and some benefit programs.

The company has about $47 million year end cash.

"Our track record of implementing cost control measures make us confident that we will be able to confront the economic climate we currently see this year," said Bradley Freiburger, X-Rite's interim CFO.