UPDATE 1-Lydall says to close Vermont unit affecting 190 jobs
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Sept 23 (Reuters) - Diversified manufacturer Lydall Inc (LDL.N) said it will close its Vermont facility, affecting 190 jobs, and consolidate its North American automotive production into its North Carolina operation to reduce operating costs.
Lydall said it sees pre-tax charges of about 32 cents to 36 cents a share and cash expenditures of $6.5 million to $7.5 million related to the consolidation, which it expects to complete by the end of 2009.
The company, which makes specialty engineered automotive thermal and acoustical barriers, said a portion of the charges will be recorded in the third and fourth quarters of 2008, with the remainder primarily recorded throughout 2009.
The two North American plants were running at less than 50 percent capacity due to the current downturn in the U.S. automotive market, and the consolidation would reduce operating expenses significantly, the company said.
More than 100 new jobs will be created at the Hamptonville, North Carolina facility as a result of the consolidation, it said. Shares of the Manchester, Connecticut-based company closed down 2 percent at $10.04 Tuesday on the New York Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Deepak Kannan)
