Hospira Inc. said it expects to take pretax charges of about $35 million as it plans to stop close a manufacturing plant in California.
Hospira said it plans to stop operations at the plant in Morgan Hill, California over the next three years transferring most manufacturing operations to other locations or third parties.
The company expects to record the pretax charges of between $29 million and $35 million in the beginning on the second quarter of 2008. The firm estimates annual cost savings of about $15 million beginning in 2011.
Hospira shares rose 0.10 percent to $41.78 at the closing trading of the New York Stock Exchange on Monday.