Whatman. No.3 in the world of LabSciences

I have just seen the news and must say i was shocked to see how much they had underestimated the restructuring costs. It must be very difficult to guesstimate these things, but by nearly 40%, geez. I just hope that they have not overestimated the cost and revenue synergies. The 3% dip in sales does not concern me too much. Growth in sales while undergoing a major acquisition would have been better though.

Here it the FT take and a couple of other news snippets.

"Whatman slips in quiet market
By Paul J Davies
Published: December 31 2004 10:55 | Last updated: December 31 2004 10:55

Shares in Whatman, the specialist papermaking company, slipped more than 7 per cent on Friday morning in very thin trade as markets prepared to close early for the New Year’s holiday.


The company was hit after it said it would cut 160 jobs and take a £14.6m charge as part of restructuring following last month’s £34.6m acquisition of German rival, Schleicher & Schuell.

The company also said that while sales for the year were running at 3 per cent below expectations, it was on target to hit consensus expectations for full-year earnings before exceptionals.

The jobs are to go as Whatman merges the paper-conversion activities of its plants in Dassel, Germany, and Banbury, UK. While it said the reduction, which takes its overall staff down to 1,000, would be only an initial reduction ahead of the reconfiguration of one of the plants, it did not say which plant would be affected.

The group will also merge and streamline the head office functions of both groups and some of the sales and business development activities.

“We have been delighted by the quality of the Schleicher & Schuell organisation and are making good progress with the integration of the two companies,” said Bob Thian, the chairman who recently ousted his second chief executive in as many years because Howard Kelly was deemed to have lost the confidence of the board.

“I am confident that the restructuring programme announced today will lead to significant value creation and growth for the enlarged group,” Mr Thian added.

The company said that the lion’s share of the charges would be taken in 2005, with smaller amounts this year and in 2006.

The shares were down 17.5p at 232p on Friday morning, though they are still almost 50 per cent up over the past twelve months.

Trading in London closed at 12.30pm."






We should know better on Tuesday whether the gap on the chart will get filled and we stay above the 200 day ma.If it does then i will be topping up.