Carpenter Technology To Cut 200 Jobs

(RTTNews) - Carpenter Technology Corp. (CRS) said Tuesday that it plans to reduce its salaried positions by about 200 or 10% of the total salaried workforce as part of a restructuring plan designed to reduce fixed overhead costs and position the company to drive long-term, profitable growth.

The restructuring plan, which also includes the elimination of about 60 outsourced positions as well as other non-labor related costs, is expected to yield about $30 million of annual fixed overhead cost savings.

The company expects to record a pre-tax charge of about $11 million in the third quarter of fiscal year 2015 as a result of implementing the plan.

In connection with the company's ongoing strategic planning, Carpenter has exited the ultra-fine grain materials development program. The company said it will record a pre-tax charge of about $13 million in the third quarter of fiscal year 201 that reflects the cost to exit a licensing agreement as well as the associated non-cash asset impairment charges.

The company also said it expects to report a net loss in the range of $0.09 to $0.05 per share for the third quarter. Excluding restructuring and special charges, the company forecasts third quarter adjusted earnings to be $0.26 to $0.30 per share.

Analysts polled by Thomson Reuters currently expect the company to earn $0.57 per share for the third quarter. Analysts' estimates typically exclude special items.