Pittsburgh On the heels of a 69 percent decrease in fiscal fourth-quarter earnings, Respironics Inc. detailed a previously announced restructuring plan that includes the promotion of vice president Craig Reynolds to the newly created position of chief operating officer, a 10-percent work-force reduction, a plant's closing and $25 million in charges over the next several quarters.

Earnings for the fourth quarter were $1.1 million, or 4 cents a share, compared with $3.6 million, or 11 cents a share, for the same period last year. For the fiscal year ended June 30, earnings were $23 million, or 73 cents a share, compared with a loss of $1.8 million, or a loss of 6 cents a share, for fiscal 1998.

In announcing details of the restructuring plan, president and chief executive officer Dennis Meteny said, "We are making significant changes with the expressed intent of improving focus on our customers while concentrating efforts on new product development activities."

He said Reynolds will oversee a new four-division structure: home care, hospital, asthma/allergy and international. The divisions will be headed, respectively, by John Miclot, Paul Woodring, Susan Lloyd and Geoffrey Waters. All are current employees.

The company will close its Westminster, Colo., manufacturing plant and 19 customer-satisfaction centers. It will also downsize its Marietta, Ga., plant, and expects to open a centralized distribution and repair center in Youngwood, Pa. Savings from the restructuring are expected to total $10 million annually, according to chief financial officer Dan Bevevino.

While Meteny said he regretted having to lay off part of the company's work force, he said the company needed to increase its performance level. "We must focus on the basics of our business," he said, "and continue to invest in new product research and development in order to maintain our market leadership." -K.G.