Praegitzer Industries To Cut Jobs
TUALATIN, Ore. (AP) _ Praegitzer Industries said Tuesday it has cut 158 jobs _ 50 of them in Oregon _ and sued the former owner of an Alabama plant that the company had to close in June.
Among those let go were sales people, designers and administrators. The circuit board manufacturer has about 1,700 employees worldwide.
``What they’re really doing is cleaning house and shrinking themselves,″ said securities analyst Thomas Moro of Advest Inc. in Chicago.
In recent years, Praegitzer has been on an acquisition binge to keep up in a consolidating industry led by companies with a billion or more in annual sales. With its cutbacks, the company is geared for sales in the $200 million to $250 million range.
Praegitzer said it will now focus on boosting the profitability of its existing operations.
The most recent restructuring aims to undo a mistake Praegitzer said it made in acquiring Intergraph Corp.’s circuit board manufacturing plant in Huntsville, Ala., last year.
The factory proved to be expensive for Praegitzer, and accounted for 9 cents of the company’s 64 cent per share loss in its fiscal third quarter.
Praegitzer said Tuesday that it is seeking $25 million in damages from Intergraph in a suit filed in U.S. District Court in Portland.