Carlsbad, Calif. In an effort to streamline decision making and compete on a global scale, Sunrise Medical is realigning into three operating groups, officials said.

Under the realignment, product development, product management and strategic supply chain activities will be combined into the Global Business Group. The new European Operating Group will manage sales and manufacturing operations in Europe. Combining the Home Healthcare Group and the U.S. portion of the Continuing Care Group will form a similar sales and manufacturing organization, the North American Operating Group. The plan is expected to be implemented over the next several months, officials said.

"I believe that the key to unlocking our potential is to get ourselves working together as a single team-Team Sunrise," chief executive officer Michael Hammes said. "And that is precisely what I believe our new architecture will accomplish."

The company will announce its new operating strategies, as well as the costs and benefits of related changes, when it releases its fiscal year-end results, officials said.

The realignment is the latest in Sunrise's efforts to rebound from a tough year when it restructured, laid off as many as 600 people, lost its veteran chairman and president Richard Chandler and grappled with financial losses. Hammes, who came aboard in January, said the realignment is the key to growth for the company.

"It will take some time and effort," he acknowledged, "but I am very confident that we are developing a winning formula that will allow Sunrise to attain solid revenue growth and respectable profit margins."

The news came in tandem with the announcement that Tom O'Donnell, president of the Home Healthcare Group, will retire in October; however, he will continue as a consultant to the company, officials said. O'Donnell, who has been with Sunrise for 13 years, said he wants to spend more time with his family. Barrie Payne, president of Sunrise Medical UK, also will retire at the end of the fiscal year.

Hammes thanked the two men for their contributions to the company, noting: "As executives gifted with great leadership and vision, they both deserve much of the credit for building Sunrise into a leading company in the markets we serve today. I'm very pleased that they have each agreed to stay on and be of assistance to us going forward."

In other news, Sunrise has introduced the Web Media Tool Kit CD designed to help providers market Sunrise products on the Internet. In addition to product descriptions, photos and logos, the CD includes technical tips and links to other sites that can help in constructing a Web site, officials said. -R.P.