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Posted January 14, 2009 | Copyright © The Northern Virginia Daily
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Kennametal cuts jobs in New Market
NEW MARKET -- Nine employees at Kennametal's local manufacturing facility have been laid off as part of the company's broader strategy to reduce costs and remain competitive.
Kennametal, based in Latrobe, Pa., announced Monday it would be cutting 800 positions worldwide in response to declining demand for industrial production and customer reductions in inventory.
The cuts will result in annual pre-tax savings of approximately $70 million, according to the company.
Kennametal spokeswoman Christine Reitano said some of the layoffs, including those in New Market, are immediate, while others will occur over the next three to six months.
She called the local impact "minimal," saying only three of the nine positions are being eliminated. The other six employees may be called back when industry conditions improve, she said.
Kennametal will offer those workers on permanent layoff outplacement services and benefits depending on their individual years of service, Reitano said.
The New Market facility, part of the company's metal-working division, employs about 100 people. It makes metal-cutting tool holders and boring bars.
Also on Monday, Kennametal announced it expects sales to decline about 10 percent for the quarter ended Dec. 31.
Shares of Kennametal (NYSE: KMT) closed Tuesday at $19.03, down 4 cents.
-- Daily Staff Report
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