April 15, 2015

Carpenter Restructuring to Save $30 Million

Prompted by weakness in the oil and gas market, Carpenter Technology Corp., Wyomissing, Pa., has begun a restructuring program to lower overhead costs and improve the company’s financial position. Its efforts are expected to yield $30 million of cost savings.

“We are confident in the technology, manufacturing capabilities, customer connections and employee dedication within our company. We are clearly disappointed with our performance over the last several quarters and are taking decisive actions to return to the level of operational and financial performance we are capable of achieving,” says Gregory Pratt, Carpenter’s chairman, president and CEO.

The restructuring plan includes reducing the company’s salaried positions by about 200, or 10 percent of the total salaried workforce. In addition, the plan includes the elimination of 60 outsourced positions, as well as other non-labor-related costs.

In connection with ongoing strategic planning, Carpenter has exited the ultra-fine grain materials development program. The company will record a pre-tax charge of $13 million in the third quarter that reflects the cost to exit a licensing agreement.

Other recent actions to drive growth include a $50 million targeted inventory reduction by the end of the fiscal year, plus an additional $50 million reduction in fiscal year 2016. Carpenter also intends to cut $100 million to $120 million from its capital expenditures.

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Tuesday, December 12, 2017