Technology

CommScope Cutting Costs

10/11/2004 10:41 AM Eastern

CommScope Inc. Monday announced major cost-reduction initiatives involving a manufacturing subsidiary.

Connectivity Solutions Manufacturing Inc. -- an indirect manufacturing subsidiary of CommScope -- adopted organizational and cost-reduction initiatives at its Omaha, Neb., site, which are designed to improve the competitive position of these operations and are expected to be substantially in place by midyear 2005.

The cable and connectivity-solutions vendor added that due to escalating material costs, it will increase pricing for essentially all major product groups 3%-9%, with implementation generally beginning Jan. 1.

“We have made excellent progress with the integration of the connectivity-solutions business purchased from Avaya Inc., but we face ongoing cost pressures and intense global competition," CommScope chairman and CEO Frank M. Drendel said in a prepared statement.

"We will continue to take actions that we believe will reduce cost, improve operations and enhance our competitive position over the longer term,” he added. “We also plan to increase prices for certain products in order to recover higher-than-expected costs of key raw materials."

September