Kennametal Will Lay Off Up to 340
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LATROBE, Pa. (AP) _ Industrial tools maker Kennametal Inc. will lay off 300 to 340 employees worldwide, or up to 2.4 percent of its work force, a company spokesman said Wednesday.
The company _ which operates 70 facilities globally and has about 14,000 employees _ cited uncertainty about the strength of the economic recovery as the reason for the layoffs, which have already begun, spokesman Steve Halvonik said.
The cutbacks are expected to save the company about $10 million in the fiscal year ending June 30.
Halvonik said most of the reductions are among support personnel.
Kennametal makes metal-cutting tools and tools for the mining and highway construction industries, among other products.
Kennametal announced the cutbacks as it reported it earned $10.8 million, or 31 cents a share, in its first quarter, in contrast to a loss of $238 million, or $7.57 a share, a year ago.
Halvonik said some employees have already been notified of the layoffs, which are expected to be completed by the end of December. He said the layoffs will result in a $9 million charge, with most of it coming in the second quarter.
Kennametal shares rose 1.7 percent, or 55 cents a share, to $32.99 on the New York Stock Exchange.
On the Net:
Kennametal Inc: http://www.kennametal.com/