- THE MAGAZINE
Minerals Technologies Inc. recently announced that it is making further reductions in its work force, including hourly and salaried employees. This reduction of approximately 340 represents 12% of the employee population, and reflects both permanent reductions and layoffs.
“These actions have become necessary because of the deepening economic downturn that is causing our customers-primarily in the steel, paper, automotive and construction industries-to curtail or shut down operations, resulting in a significant drop in demand for our products, ” said Joseph C. Muscari, chairman and chief executive officer. “The resulting shortfall in sales is greater than we had forecast at the end of the third quarter, and, as a result, we expect our fourth quarter earnings, excluding special items, to be significantly below the current Wall Street projections of $0.63 per share.”
In addition, the company will record a restructuring charge of approximately $6 million to $7 million, primarily related to severance and associated costs.
“The actions the company took one year ago to restructure and realign its businesses have better positioned us to effectively manage through this recession,” said Muscari. “However, additional action was needed because business volumes are far below our expectations. Minerals Technologies continues to have a strong balance sheet, good cash flow, leaner operations, and we will make the adjustments necessary to keep pace with changes in our customers’ requirements and to remain profitable.”
The company’s website is located at www.mineralstech.com.