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COHERENT CORP. 8-K Report, Exit or Disposal Costs (May 30, 2023)

Reports
Financial Events·Regulation FD·Other Events+1
Filing Date
Filed May 30, 2023
Period End
May 23, 2023
Security
COHR
In the record · 2016–202610-K1110-Q338-K195

COHR filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 195 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Aug ’17Aug ’17
  2. Deal closed8-K · Sep ’19Sep ’19
  3. Leadership change8-K · Jul ’22Jul ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed May 30, 2023. Cited figures are marked; the original filing is the authoritative source.

Coherent Corp. (COHR) announced a significant restructuring plan approved by its Board of Directors on May 23, 2023.

This plan involves site consolidations, facility moves, and closures, aiming to streamline operations and create a more resilient business model. The company anticipates incurring pre-tax charges between $150 milliona and $200 million, which will include severance costs and non-cash impairment charges related to asset adjustments. These restructuring efforts are expected to be substantially completed by the end of fiscal year 2025.

In addition to operational restructuring, the company also declared a quarterly dividend of $3.00b per share on its 6.00% Series A Mandatory Convertible Preferred Stock, payable in cash on July 3, 2023, to shareholders of record on June 15, 2023. The filing also includes an investor presentation, furnished under Regulation FD, likely detailing these strategic initiatives and their expected financial impact.

02—Key points

Key Highlights

  1. Coherent Corp. approved a May 2023 Restructuring Plan involving site consolidations and facility closures.
  2. The restructuring aims to create a simpler, more streamlined, resilient, and sustainable business model.
  3. Expected pre-tax charges for the restructuring are estimated between $150 million and $200 million.
  4. These charges include $75 million to $100 million for cash-related severance and benefits.
  5. An additional $75 million to $100 million are expected for non-cash impairment charges on production assets.
  6. The restructuring activities are projected to be substantially completed by the end of fiscal year 2025.
  7. A quarterly dividend of $3.00 per share on Series A Mandatory Convertible Preferred Stock was declared, payable July 3, 2023.

03—Questions

Frequently Asked Questions

  1. What is the primary purpose of the restructuring plan?

    The primary purpose of the restructuring plan is to realign the company's cost structure and transform it into a simpler, more streamlined, resilient, and sustainable business model through site consolidations, facility moves, and closures.

  2. What is the estimated financial impact of the restructuring?

    The company expects to incur approximately $150 million to $200 million in pre-tax charges. This includes an estimated $75 million to $100 million for cash-related severance and benefits, and $75 million to $100 million for non-cash impairment charges related to production assets and facility improvements.

  3. When is the restructuring expected to be completed?

    The restructuring actions are expected to be substantially completed by the end of fiscal year 2025, although actual timing and costs may vary.

  4. What is the status of the dividend for the Series A Mandatory Convertible Preferred Stock?

    The Board of Directors declared a quarterly dividend of $3.00 per share on the 6.00% Series A Mandatory Convertible Preferred Stock, which will be paid in cash on July 3, 2023, to shareholders of record as of June 15, 2023.

04—Continue

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