Kennametal To Can 1,200 Workers

[OhioChick]

Source: Forbes

01.12.09, 02:10 PM EST

The industrial supplier will increase cost-cutting actions to combat dropping demand.

Kennametal has been retooling its operations as a steeper-than-expected drop in global industrial production forced the materials and components company to enact deeper cost-cutting measures. On Monday, the company said it will slash more than 1,000 jobs, and it lowered its quarterly guidance to well below what analysts have been expecting.

Shares of the Latrobe, Pa.-based industrial supplier fell 6.4%, or $1.30, to $19.09, during Monday's morning trading session after Kennametal (nyse: KMT - news - people ) said demand for its tools and advanced materials have been hurt by customers' actions to keep inventories low.

Expanding on a prior cost reduction plan, the company said it would cut an additional 800 positions from its global salaried workforce, adding to previous plans to eliminate 400 jobs -- putting total cuts at 1,200. The layoffs are expected to yield $100.0 million in annual savings.

"We are implementing and accelerating restructuring in response to the current market challenges," said Chairman Carlos Cardoso. "While we will work to minimize the impact of these actions on our customers and employees, we will continue to monitor the economic environment and take further steps as warranted."



Read more: http://www.forbes.com/markets/2009/01/12/kennametal-restructuring-outlook-markets-equity-cx_mp_0112markets20.html

[babylonsister]

1. This is getting really bad, isn't it.

:(