Spartech will layoff 350 workers to regain profitability
Sales for the third quarter of 2003 held steady for Spartech Corp., but earnings fell by more than 25% compared wit...
Sales for the third quarter of 2003 held steady for Spartech Corp., but earnings fell by more than 25% compared with last year, so the producer of sheet and specialty compounds has announced measures to increase its operating margins.
As part of Spartech’s "Lean Process Initiative", the company’s workforce will be cut by about 10%, which equals 350 workers. Also, work schedules at several operations will be realigned and certain warehouse facilities will be consolidated or eliminated.
In Canada, Spartech operates a compounding operation in Stratford, ON, and sheet extrusion operations in Granby, QC and Cornwall, ON.
Spartech’s sales for the third quarter of 2003, ended August 2, were US$239 million. Diluted earnings per share for the quarter are expected to be US$0.27 to US$0.29, a drop of 25% from the same quarter in 2002.
The drop in earnings is due to "competitive pricing pressures, caused by the sluggish economic environment, and near record high resin prices early in the quarter," according to a company release.