Worthington Industries Announces Layoffs, Facility Closings
10/24/2008 - Worthington Industries will reduce its workforce by nearly 300 through a combination of layoffs and closure of the company’s Louisville steel processing facility and its Renton, Wash., metal framing facility.
Worthington Industries has announced plans to reduce its workforce by nearly 300 through a combination of plant closings and layoffs. Closure include the company’s steel processing facility in Louisville, Ky., and its metal framing facility located in Renton, Wash..
“These actions are a continuation of the broad-based cost cutting and transformational effort we began a year ago,” said John P. McConnell, Worthington Industries Chairman and CEO. “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.”
Opened in 1961, the company’s Louisville facility was the first Worthington Steel Co. facility 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 company’s 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.
The company estimates 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 a premier North American 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 8000 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.
