Kimball to Cut 400 Jobs, Close 5 Plants
JASPER, Ind. (AP) _ Furniture and electronics maker Kimball International Inc. is cutting 400 jobs, or 4.2 percent of its work force, and is closing five unprofitable factories to trim costs to fit decreased demand.
Most of the job cuts are in the furniture and cabinets division, where sales have suffered because of the weak economy and increased competition from lower-cost imports, the company said in a news release Thursday. It employs about 9,742 people worldwide.
Company spokesman Marty Vaught said Friday that the plants to be closed are an Indiana manufacturing operation in West Baden; a store fixtures plant in Boca Raton, Fla.; a metal component stamping division in Batesville, Miss.; and wood plants in Greensburg, Ky. and Lafayette, Tenn. Lumber yards in Greensburg and Lafayette were expected to remain open.
Kimball said it would take a $30 million pretax charge in the second fiscal quarter of 2003 related to the factory closings.
At midday Friday in the Nasdaq Stock Market, Kimball shares were up 7 cents at $13.91.
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