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Waters Corp. Withdraws FY20 Outlook; Suspends Share Buybacks; To Cut Pay

Specialty measurement company Waters Corp. (WAT), while reporting weak earnings and sales in its first quarter, said Tuesday that it is withdrawing its earlier provided full-year 2020 guidance due to the evolving and significant uncertainties related to the impact of the COVID-19 pandemic.

Waters has also temporarily suspended share repurchases until there is a more stable and predictable business environment. The company also withdrew its previous full-year guidance to repurchase $800 million of shares during 2020.

Amid COVID-19, the company is taking various measures that are expected to reduce Waters' cost structure by an estimated $100 million for the year.

The company expects base salary reduction of 40 percent for the CEO; 30 percent for Executive Committee members and 20 percent for Vice-Presidents for a 90-day period.

Further, a combination of 10 percent salary reduction, reduced working hours and furloughs for the broader employee workforce, dependent on role and geographic
location for a 90-day period.

Waters has delayed capital expenditures and implemented plans to reduce working capital, which is estimated to improve cash flow by $45 million for the remainder of the year.

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