On Wednesday, chemical manufacturer DuPont announced plans to cut 1,500 jobs and close four European facilities as part of a restructure of its performance coatings business, the Associated Press reports via the Plainview Daily Herald.
The company also plans to merge its production and technical assets, and reconfigure its market strategies to match key customers and divisions, according to the AP.
The majority of the job cuts will take place in Europe, and four of the companies’ European production and laboratory facilities in Spain, the Netherlands and Germany will also be closed down, the AP reports.
DuPont announced another layoff of some 200 Michigan employees in February, according to the AP.
The chemicals giant predicts the restructuring will save some $165 million annually, and it will log a first-quarter pretax charge in that amount, the AP reports, with charges of as much as $55 million over the coming year.
DuPont expects to make the cuts and close the facilities over a year and a half, according to the AP.
Charles O. Holliday Jr., DuPont’s chairman and chief executive, told the AP, “This transformation plan is designed not only to improve short-term health of these businesses but also to ensure a future of sustainable, profitable growth.”
The company also bumped up its first-quarter profit guidance by 14 percent, to 80 cents a share from 70 cents, and its 2006 projection by 10 cents over an earlier prediction, to $2.70 per share, the AP reports.
Both projections do not take into account the restructuring plan’s $165 million pretax charge, according to the AP.
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