SANTA CLARA (dpa-AFX) - Scientific instruments maker Agilent Technologies Inc. (A) said Tuesday that it is exiting its Nuclear Magnetic Resonance business as part of its strategy to address the business shortfalls of its Research Products Division.
Santa Clara, California-based Agilent entered the Nuclear Magnetic Resonance business in 2010, with the acquisition of Varian. Since then, the business has not met growth and profitability objectives, the company noted.
The company expects the decision to eliminate about 300 jobs, mostly within the next 12 months. The majority of the affected positions are located in Yarnton, U.K., and Santa Clara, California.
To cover the cost of exiting the business, Agilent will take an about $72 million restructuring charge in the fourth quarter. It expects a $20 million to $30 million decline in revenues in fiscal year 2015 due to the business closure, but a positive impact of about $10 million in operating profit in fiscal year 2015.
For the fourth quarter, Agilent continues to expect adjusted earnings of $0.87 to $0.91 per share, and projects revenues to be negatively affected by currency at about $13 million, and lower NMR-related revenues by about $12 million.
Analysts polled by Thomson Reuters currently expect the company to earn $0.89 per share for the fourth quarter. Analysts' estimates typically exclude special items.
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