Pentair Inc. cut earnings forecasts and said Thursday it will slash 1,600 jobs due to sales that plummeted 9 percent to $770 million during the fourth quarter.
The job cuts represent 10 percent of the Golden Valley pump and water equipment maker's total workforce. The company also said it will close 15 of its facilities next year.
Fourth quarter earnings are now expected to drop to 40 to 42 cents a share, down from an earlier estimate of 52 to 55 cents. Full year earnings are now expected to hit just $2.19 to $2.21 a share rather than the previous forecast of $2.28 to $2.31.
Pentair issued a statement saying it expects fourth quarter sales to drop by $70 million to $770 million "due to sharp volume declines" in the company's technical products business as well as certain industrial, commercial and residential water businesses.
While company executives started cutting costs in the third quarter, they said "global economic conditions declined more quickly and intensely than forecasted."
Pentair is the third Twin Cities manufacturer to announce job cuts this week, joining floor equipment maker Tennant Co. of Golden Valley and fluid-control equipment maker Graco of Minneapolis. Pentair also said it will freeze hiring, eliminate annual salary increases and aggressively cut indirect costs and capital expenditures.
Source : Star Tribune
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]
1 comments:
This is a very sad information. However, it must be a wise decision to maintain the quality of a reputable brand especially for pool equipment. Therefore, people will still trust the name.
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