282 Employees; Louisville and Renton to Close
COLUMBUS, Ohio--(BUSINESS WIRE)--Worthington Industries (NYSE: WOR) announced today that the
company will reduce its workforce by nearly 300 through a combination
of plant closings and layoffs. The facilities to be closed are: in
steel processing, the Louisville, Ky., facility and in metal framing,
the Renton, Wash., location.
"These actions are a continuation of the broad-based cost cutting
and transformational effort we began a year ago," said John P.
McConnell, Chairman and CEO of Worthington Industries. "Pursuing these
efforts is even more important as the industry sees the downward
declines in the automotive, construction and other markets. It is
never pleasant to displace employees, but it is critical that we
control our costs and appropriately manage our balance sheet during
these difficult economic conditions. We also intend to drive
additional cost savings by optimizing work schedules and reducing or
eliminating overtime." McConnell added, "While this has become a more
challenging business environment, our focus is on preserving what has
distinguished us throughout prior economic cycles: profitability,
financial strength and consistent dividends."
The Louisville facility was opened in 1961, the first facility in
the Worthington Steel Company outside of Columbus. At the time, it
served a growing Southern market including large appliance
manufacturers and a number of roll-forming companies. While profitable
for a number of decades, the market in this region significantly
shifted in recent years. Louisville employs 50 employees and is
expected to close by May 31, 2009. The steel processing business
segment is also reducing its workforce by 60 seasonal and temporary
workers. The Renton facility employs 22 and will be closed by December
31, 2008. The metal framing facility was opened in 2000, but has
experienced a decline in demand the past two years. Dietrich Metal
Framing is laying off an additional 150 employees across the
organization.
It is estimated that these actions will result in annual savings
of $13 million with one-time expenses of $6 million, primarily due to
severance costs and asset write-downs.
Worthington Industries is a leading diversified metal processing
company with annual sales of approximately $3 billion. The Columbus,
Ohio, based company is North America's premier value-added steel
processor and a leader in manufactured metal products such as metal
framing, pressure cylinders, automotive past model service stampings,
metal ceiling grid systems and laser welded blanks. Worthington
employs approximately 8,000 people and operates 68 manufacturing
facilities in 11 countries.
Founded in 1955, the company operates under a long-standing
corporate philosophy rooted in the golden rule, with earning money for
its shareholders as the first corporate goal. This philosophy, an
unwavering commitment to the customer, and one of the strongest
employee/employer partnerships in American industry serve as the
company's foundation.
Safe Harbor Statement
The company wishes to take advantage of the Safe Harbor provisions
included in the Private Securities Litigation Reform Act of 1995 (the
"Act"). Statements by the company relating to projected timing,
results, cost savings, charges, expenditures, impacts and benefits
from transition plans, plant closings, cost reduction efforts, layoffs
and other workforce reductions, or other new initiatives; expected
cost savings, profitability, balance sheet strength, financial
strength or dividend payments; future or expected growth, growth
opportunities, performance, sales, operating results and earnings per
share; projected capacity and working capital needs; pricing trends
for raw materials and finished goods, and the impact of pricing
charges; anticipated capital expenditures and asset sales; projected
timing, results, costs, charges and expenditures related to
acquisitions or to facility startups, dispositions, shutdowns and
consolidations; new products, services and markets; expectations for
company and customer inventories, jobs and orders; expectations for
the economy and markets; expectations for improvements in efficiencies
or the supply chain; expectations for improving margins and increasing
shareholder value; effects of judicial rulings and other
non-historical matters constitute "forward-looking statements" within
the meaning of the Act. Because they are based on beliefs, estimates
and assumptions, forward-looking statements are inherently subject to
risks and uncertainties that could cause actual results to differ
materially from those projected. Any number of factors could affect
actual results, including, without limitation: the effect of national,
regional and worldwide economic conditions generally and within major
product markets, including a prolonged or substantial economic
downturn; product demand and pricing; changes in product mix, product
substitution and market acceptance of the company's products;
fluctuations in pricing, quality or availability of raw materials
(particularly steel), supplies, transportation, utilities and other
items required by operations; effects of facility closures and the
consolidation of operations; the effect of consolidation and other
changes within the steel, automotive, construction and related
industries; failure to maintain appropriate levels of inventories; the
ability to realize targeted expense reductions such as head count
reductions, facility closures and other expense reductions; the
ability to realize other cost savings and operational efficiencies and
improvements on a timely basis; the overall success of, and the
ability to integrate, newly-acquired businesses and achieve synergies
therefrom; capacity levels and efficiencies within facilities and
within the industry as a whole; financial difficulties (including
bankruptcy filings) of customers, suppliers, joint venture partners
and others with whom the company does business; the effect of
disruption in business of suppliers, customers, facilities and
shipping operations due to adverse weather, casualty events, equipment
breakdowns, acts of war or terrorist activities or other causes;
changes in customer inventories, spending patterns, product choices,
and supplier choices; risks associated with doing business
internationally, including economic, political and social instability,
and foreign currency exposure; the ability to improve and maintain
processes and business practices to keep pace with the economic,
competitive and technological environment; adverse claims experience
with respect to workers compensation, product recalls or liability,
casualty events or other matters; deviation of actual results from
estimates and/or assumptions used by the company in the application of
its significant accounting policies; level of imports and import
prices in the company's markets; the impact of judicial rulings and
governmental regulations, both in the United States and abroad; and
other risks described from time to time in the company's filings with
the United States Securities and Exchange Commission.
Contact:
Worthington Industries
Media Contact:
Cathy M. Lyttle, 614-438-3077
VP, Corporate Communications
E-mail: cmlyttle@WorthingtonIndustries.com
or
Investor Contact:
Allison M. Sanders, 614-840-3133
Director, Investor Relations
E-mail: asanders@WorthingtonIndustries.com
or
www.WorthingtonIndustries.com
Source: Worthington Industries