Sunrise Medical to Cut 300 Jobs, Report Losses
Sunrise Medical Inc. said it will cut 300 jobs, or 7% of its work force, and report losses for the fourth quarter and full year because of higher reorganization costs and weak sales. The Carlsbad-based maker of electric wheelchairs and other equipment for the disabled said it expects little if any rise in fourth-quarter sales from the third quarter’s $160.4 million. It blamed weak sales of respiratory equipment, as well as declining sales in Britain. Severance costs from the job cuts will increase its reorganization and other charges to $29 million in the fiscal year ending today, $5 million more than the company expected. The higher charges and the stagnant sales will cause Sunrise to report losses for the quarter and year. Some of the charges stem from Sunrise’s acquisition in April of Sentient Systems Technology Inc., a maker of electronic devices and software. Sunrise’s shares fell 50 cents to close at $14.19 on the New York Stock Exchange.