2020-06-09 06:57:46 KMT Kennametal
06/09/20 06/0906:57 06/09/2006:57 | Kennametal expects structural cost reduction plans to be complete in 1H21Kennametal is providing an update on its ongoing Simplification/Modernization initiative. In addition, it is announcing continuing cost-control actions to mitigate the lower market conditions associated with COVID-19. The company said in a release, "As part of its ongoing Simplification/Modernization initiative, the Company is accelerating its structural cost reduction plans. A restructuring of approximately 10 percent of salaried employees globally is expected to be substantially complete in the first half of fiscal 2021. Accordingly, the Company is increasing the estimated annualized benefits of its FY21 Restructuring Actions to $65 million to $75 million from $25 million to $30 million and the pre-tax charges to $90 million to $100 million from $55 million to $60 million. Effective July 1, the Company is implementing the following cost-control actions to mitigate headwinds from COVID-19: Compensation of salaried employees will temporarily be reduced by 10 to 20 percent based on job level through the first half of fiscal 2021. This action is expected to save approximately $10 million to $15 million per quarter, which is similar in amount to and replaces furloughs or similar actions currently in place for salaried employees. Kennametal's Board of Directors cash compensation will be reduced by 20 percent through the first half of fiscal 2021. The Company will continue temporary shutdowns and reduced production schedules to align manufacturing capacity to anticipated customer demand." | |
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