AMTROL to achieve annual savings of $1.2 million with one-time charge of $1.8 million in quarter.WEST WARWICK, R.I.--(BUSINESS WIRE)--Aug. 23, 1995--AMTROL Inc. announced today that as part of its strategy to improve its financial performance and to enhance its competitiveness, it plans to take a third quarter pre-tax charge against earnings of approximately $1.8 million for rationalization of production and costs related to employee severance. The reductions are structured to enable the company to achieve pre-tax savings of approximately $1.2 million per year. The company said that effective September 15, 1995 it will cease operations at its Plano, Texas facility, which produces chemical containers used primarily for transportation and distribution of refrigerant re·frig·er·ant adj. 1. Cooling or freezing; refrigerating. 2. Reducing fever. n. 1. A substance, such as air, ammonia, water, or carbon dioxide, used to provide cooling either as the working substance of gases. Production from this facility, which accounts for less than 25 percent of AMTROL's chemical container capacity, will be relocated to other facilities where continuous improvement programs have already improved efficiencies. As a result, the company is reducing its worldwide workforce by approximately 60 positions, or six percent. "The chemical container business is important to AMTROL and is part of our long-term strategy," stated David Beretta be·ret·ta or ber·ret·ta n. Variants of biretta. , the company's president, "Therefore, to better serve our growing markets, we are responding to market demand and realigning our manufacturing internationally. "The effectiveness of our continuous improvement programs to reduce costs and to raise productivity have made these consolidations possible and should improve our financial performance significantly as the redundancy costs and working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. are reduced beginning in the fourth quarter of this year," Beretta said. "Third quarter demand continues to be weak, similar to the second quarter, but our lower costs, renegotiated raw material supply contracts and price increases we've initiated on certain products, should enable AMTROL to report improved operating margins in the fourth quarter of this year," Beretta concluded. AMTROL is a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. producer and marketer of flow and expansion control technology used in water systems and heating, ventilating ventilating Natural or mechanically induced movement of fresh air into or through an enclosed space. The hazards of poor ventilation were not clearly understood until the early 20th century. Expired air may be laden with odors, heat, gases, or dust. and air conditioning products, with a growing international presence. The company's common stock trades on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on under the symbol AMTL AMTL Army Materials Technology Laboratory AMTL American Medical Testing Laboratories AMTL Advanced Manufacturing Technology Laboratory AMTL active management of the third stage of labor . CONTACT: Bibelnieks Associates, Inc., New York Yanis Bibelnieks, 212/949-2295 |
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