Nature's Sunshine Reports Layoffs

PROVO, Utah--Nature's Sunshine Products Inc. (NASDAQ:NATR) reported Oct. 3 that for its third quarter (3Q03), ended Sept. 30, it expects to report a net loss as a result of cutting programs and employee positions. Over the course of the quarter, 50 employees holding both domestic and international positions were laid off, which represented 5 percent of the company's work force.

The company also expects to report a net loss of approximately $.02 to $.04 per common share after taking these measures to streamline operations and improve efficiencies. Nature's Sunshine predicts these actions will save the company between $7 million and $9 million per year.

This is not the first time the company has announced downsizing. For its fiscal 2002 (FY02), ended Dec. 31 and reported Feb. 18, the company reduced its work force by 7 percent during the course of the year. The company also reported a 6-percent decrease in yearly sales, going from $318.7 million in FY01 to $298.7 million in FY02. At the time, Daniel Howells, chief executive officer and president, stated, "While the earnings decline was clearly disappointing ... new marketing programs and products introduced at our convention in September [2002] are clearly benefiting domestic results, which currently represent almost 60 percent of our business."

At press time, the company's stock was up $.06, coming in at $8.30 per common share, with 13.9 million shares outstanding. The company expects to release its 3Q03 financial report later this month.