Carpenter Technology Cuts 500 Jobs
Sep. 30, 2002
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WYOMISSING, Pa. (AP) _ Specialty materials manufacturer Carpenter Technology Corp. will eliminate about 500 jobs in response to weak demand in the aerospace market and other industries, the company said Monday.
The job cuts and other cost-reduction efforts are expected to result in an annual savings of $40 million to $45 million, which will be used to reduce debt, said Dennis M. Draeger, chairman and chief executive officer.
The company said it will take special charges totaling $20 million to $25 million in the first and second quarters of next year to cover the cost of the restructuring.
Carpenter shares were down sharply at midday, falling $2,76, or 17 percent, to $13.27.
The 500 positions, about 10 percent of Carpenter's work force, will be cut through job eliminations, layoffs and early retirement incentives, and will include 265 salaried employees, the company said.
Carpenter Technology also said it will reduce its quarterly dividend to 8.25 cents a share from 33 cents a share.
Draeger said the restructuring will allow the company to remain profitable amid reduced demand for its specialty metals and other materials for the aerospace, automotive, power generation, medical and other industries.
Carpenter Technology employs about 5,800 people producing specialty materials, including more than 22,000 stainless steel and specialty metal products, used in manufacturing products including aircraft, golf clubs, anti-theft devices, hip implants, pumps, valves, fittings and car fuel injection systems.
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