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Kennametal Inc. announced layoffs for 1,200 employees Monday morning amid what it called a global decline in industrial production.
"We are implementing and accelerating restructuring in response to the current market challenges," Carlos M. Cardoso, Kennametal CEO, said in a statement. "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."
The company will reduce its global salaried workforce by 800 positions within the next three to six months. Those are in addition to the 400 positions Kennametal announced it was eliminating in April.
The Latrobe-based manufacturer of industrial tools and specialty metals said the job cuts include 90 employees at its headquarters and 60 across the company’s
The company said the actions will give Kennametal about $100 million in pre-tax annual savings.
“Kennametal has made great progress in becoming a resilient company by pursuing our strategies to balance the company across businesses and geographies, and this has led us to be a stronger company than we were during the last downturn,” spokeswoman Christina Reitano said in an e-mail. “However, we are not immune to an economic crisis as deep and global in nature as this one is turning out to be. Customer demand is down and therefore, we must right-size the business as appropriate to keep Kennametal competitive and poised for future growth.
Kennametal also reduced its earnings forecast for the second quarter that ended Dec. 31 to 34 cents per share, excluding restructuring charges of about 14 cents per share. The company previously had estimated income between 51 cents and 56 cents per share.
On average, analysts polled by Thomson Reuters have predicted a profit of 48 cents per share.
Kennametal (NYSE: KMT) will announce second quarter results Jan. 29.
http://pittsburgh.bizjournals.com/pittsburgh/stories/2009/01/12/daily3.html?ana=e_du_pub
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