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.