Citing a global decline in industrial production, Kennametal Inc. of Unity said this morning it is eliminating about 150 jobs in four facilities in Pennsylvania as part of a global restructuring that will cut 1,200 jobs worldwide and save the company $100 million annually.
Kennametal, a specialty toolmaker, said that about 90 manufacturing, corporate function and sales jobs will be eliminated from its headquarters in Unity; 20 jobs from a plant in Irwin; about 30 jobs from its manufacturing plant in Bedford; and about seven jobs from its manufacturing plant in New Castle.
For those Kennametal headquarter workers affected, including employees in manufacturing, corporate function and sales, the job loss will be permanent and it took effect today, said spokeswoman Christina Reitano. For hourly workers at the three Kennametal manufacturing plants in Pennsylvania that were affected, those workers will be laidoff this week and will have recall rights to their jobs, Reitano said.
The reduction in the workforce will leave Kennametal with about 1,450 jobs in Pennsylvania in six facilities. Kennametal's Extrude Hone plant in Irwin and its Kingston plant in Derry were not affected by this restructuring, Reitano said.
In Ohio, where Kennametal operates four plants, the company plans to eliminate about 53 jobs, Reitano said.
The restructuring announced Monday is separate from the restructuring that Kennametal Chief Executive Carlos Cardoso announced in April 2008 as part of a plan to reduce the company's manufacturing footprint.
Under that plan, Kennametal closed its Chestnut Ridge facility in Derry, resulting in the loss of about 70 jobs. Many of the workers from the Chestnut Ridge plant replaced employees with less seniority at the Kingston plant.
On a global basis, the company said that 800 positions would be eliminated over the next three to six months, saving about $70 million before taxes. Another 400 jobs will be cut in the next six to nine months, savings some $30 million. Some job cuts in other countries will be timed to comply with labor laws of foreign nations, Reitano said.
Kennametal also said it would report sales 10 percent lower than earlier expected for the quarter ended Dec. 31 and post a restructuring charge of about 14 cents per share. Kennametal shares traded at $19.03, down $1.36, or 6.7 percent at 11:33 a.m. today.
