Jan 16 Specialty metals and plastics distributor A.M. Castle & Co said it will cut 10 percent of its workforce in a restructuring of its core metals business as it seeks to reduce costs.
A.M. Castle, which employs about 1,781 people, expects the restructuring to add $33 million to annual operating profit.
The Illinois-based company said it will consolidate five warehouses catering to the metals business, which accounts for 90 percent of total revenue.
"We experienced softness in demand that was greater than anticipated during the fourth quarter, as well as lower activity levels due to extended seasonal shutdowns," Chief Executive Scott Dolan said in a statement.
A.M. Castle expects to record a pre-tax charge of about $10 million in 2013 related to the restructuring.