Volume 39, Issue 5, May 2004
DuPont to Cut 3,500 Jobs in an Effort to Improve Cost by $900 Million
Wilmington, Del.-based DuPont has announced it will cut 3,500 jobs this year (about 6 percent of its workforce) as it progresses toward its $900 million cost improvement commitment, which it announced last December. The company also announced it will reduce 450 contractor positions. The job cuts exclude Invista™, its textile subsidiary that it sold to Koch Industries Inc. According to a press release issued by the company, the reductions are part of the company’s plan to achieve $900 million annualized cost improvement in 2005. The release said DuPont was on track to realize that objective through fixed and variable cost reductions, as well as variable margin improvements.
“These are difficult but necessary decisions as we align our resources with market needs and adjust the size of our infrastructure following the anticipated separation of Invista,” said Chad Holliday, chairman and chief executive officer. “These actions will help assure the near- and long-term competitiveness of our businesses worldwide as well as progress toward our mission of sustainable growth.”
The workforce reductions, most of which will occur in mid-2004, are expected to render about $325 million in annual savings. About 3,000 of the positions will be eliminated through severance programs and about 500 through normal attrition. Jobs affected will be primarily in North America and Western Europe. DuPont expects to take a one-time second-quarter charge of approximately 17 cents to 19 cents per share as a result of the restructuring actions, largely for employee severance costs.
Custom Glass Products to Expand in North Carolina
An expansion is in the works for Salisbury, N.C.-based Custom Glass Products of Carolina Inc., a manufacturer of Decralite Grids, insulating glass and laminated glass. The company is adding 20,000-square that will house an additional Decralite line and a new coating line for spandrel glass applications.
“Decralite Grids continue market penetration and have become the preferred system among quality homebuilders and window manufacturers,” said Steve Reeder, president of the North Carolina operations. “This move is only part of our expansion efforts this year as Decralite has become an international product.”
In addition, the company announced that its sister company, Custom Glass Products Inc., has added a second Decralite line to one of its Wisconsin plants.
|Alumicor Named One of Canada’s 50 Best Managed Companies
Toronto-based Alumicor Ltd., has been named one of Canada’s 50 Best Managed Companies, through a national, annual contest sponsored by Deloitte, CIBC Commercial Banking, National Post and Queen’s School of Business. Twelve thousand companies were invited to participate; selection criteria included the following: financial performance, strategy, capability to execute effectively and culture within the organization.
“This award is a clear recognition of the contributions of our 300 employees, sales agents, customers, suppliers and lenders over the years,” said Lakis Georgiou, president and chief executive officer. “The people [who] do well at Alumicor are those [who] thrive on challenges. Alumicor is not a stress-free organization, but one with strong values and one where employees are treated with a high level of respect. Our competitive advantage is our people who continue to excel everyday and who share in the company’s profits each year.”
“Alumicor clearly demonstrates innovation, leadership and a focus on its employees and customers,” said James McSherry, executive vice president and managing director of CIBC Commercial Banking, a national sponsor of the 50 Best program. “Its’ example illustrates that focusing on the fundamentals, while maintaining a clear vision, yields outstanding results.”
FTI Earns ISO Registration
The St. Petersburg, Fla., manufacturing site of Film Technologies International (FTI) has earned ISO 9001 registration.
“We have streamlined and fine-tuned our entire facility from customer service to shipping,” said Frank Miro, executive vice president of operations. “As a result of these measures, our customers can expect to receive even higher products and services from FTI.”
“FTI achieved ISO 9001 certification after one year of intense, internal review,” added Shawn Kitchell, plant manager. “ … Procedures have been documented and process conditions have been captured so that our proven ways of doing things—those that have made us so successful—will be achieved every time.”
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