SALT LAKE CITY, May 15, 2019 /PRNewswire/ -- Varex Imaging
Corporation (Nasdaq: VREX) today said that it is not changing its
guidance for fiscal year 2019 based on the List 3 tariff increase
to 25% announced by the United
States on May 9, 2019 or
retaliatory tariffs announced by China on May 13,
2019.
Specifically, there were no additional retaliatory tariffs
imposed on the company's U.S. manufactured X-ray tubes or digital
detectors imported into China as a
result of these recent List 3 actions. Certain supply chain items
that the company sources from China, such as printed circuit boards, would
be subject to higher tariffs (increase from 10% to 25%).
Trade discussions between the U.S. and China remain fluid and could result in
additional new tariffs or changes to enacted tariff rates in the
future. On May 14, 2019, the U.S.
proposed new List 4 tariffs on Chinese products. At this time,
there is no associated implementation date nor a response from
China.
As previously disclosed, to help lessen the impact of tariffs,
Varex is aggressively pursuing opportunities to mitigate tariffs
through a number of different measures.
"We continue to redirect our supply chain away from China to other countries and expect much of
this shift will have been completed over the next couple of
quarters. We also continue to scale-up additional manufacturing
capabilities outside of the United
States, including in China," said Sunny
Sanyal, President and Chief Executive Officer of Varex
Imaging Corporation.
This scale-up is part of Varex's new 'Local for Local'
initiative, which the company launched this week at the Chinese
Medical Equipment Fair in Shanghai
as a strategy to strengthen customer partnerships by establishing
local commercial relationships, deliver local service and support,
and source from local suppliers. "Early feedback on the investments
in the Wuxi facility and this new globally local strategy has been
positive," Sanyal added.
In addition, Varex has filed applications with the U.S. Trade
Representative to exclude imports of certain of its components from
tariffs enacted in 2018 and continues to work with its local
representatives on trade policy matters.
About Varex
Varex Imaging Corporation is a leading innovator, designer and
manufacturer of X-ray imaging components, which include X-ray
tubes, digital detectors and other image processing solutions that
are key components of X-ray imaging systems. With a 65+ year
history of successful innovation, Varex's products are used in
medical imaging as well as in industrial and security imaging
applications. Global OEM manufacturers incorporate the company's
X-ray sources, digital detectors, connecting devices and imaging
software in their systems to detect, diagnose and protect.
Headquartered in Salt Lake City,
Utah, Varex employs approximately 2,000 people located at
manufacturing and service center sites in North America, Europe, and Asia. For more information
visit vareximaging.com.
Forward Looking Statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Statements
concerning tariff classifications; the impact of tariffs on the
company's guidance, business and financial performance; the current
status of U.S. and China trade
discussions; the company's actions to mitigate the impact of
tariffs; and any statements using the terms "believe," "expect,"
"intend," "future," "anticipate," "will," "could," or similar
statements are forward-looking statements that involve risks and
uncertainties that could cause the company's actual results to
differ materially from those anticipated. While forward-looking
statements are based on assumptions and analyses made by us that we
believe to be reasonable under the circumstances, whether actual
results and developments will meet our expectations and predictions
depend on a number of risks and uncertainties which could cause our
actual results, performance, and financial condition to differ
materially from our expectations. While it is not possible for us
to predict them all, such risks and uncertainties include the
continued impact of tariffs or a global trade war on the company's
products and customer purchasing patterns; our ability to
successfully execute mitigation activities; foreign and domestic
government action; and the other risks listed from time to time in
our filings with the U.S. Securities and Exchange Commission, which
by this reference are incorporated herein. Any forward-looking
statements made by us in this news release speaks only as of the
date on which it is made. The company assumes no obligation to
update or revise the forward-looking statements in this release
because of new information, future events, or otherwise.
For Information Contact:
Howard Goldman
Director of Investor & Public Relations
Varex Imaging Corporation
801.978.5274 | howard.goldman@vareximaging.com
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SOURCE Varex Imaging Corporation