AFS Survives Sell-Off At Alcoa
AFS Survives Sell-Off At Alcoa
Jason Sandefur
Scrambling to slash spending and reduce output, Alcoa Inc. will cut 13,500 jobs – about 13% of its workforce. It’s unclear how many of those jobs would be lost at Alcoa Fastening Systems, a primary supplier to the Boeing 787 Dreamliner project.
However, AFS was not among the four business units Alcoa intends to divest: electrical and electronic systems, global foil, cast auto wheels and European transportation products businesses.
Those units, which employ a total of 22,600 people at 38 locations, had combined 2008 revenues of $1.8 billion, with an estimated after-tax operating loss of about $105 million, according to Alcoa. Net proceeds are expected to reach $100 million.
Alcoa also imposed a global salary and hiring freeze to combat a deepening global recession.
Likewise, it lowered total aluminum output by more than 750,000 metric tons, or 18%. Alcoa ultimately expects savings of about $450 million annually.
The company said capital expenditures will drop 50% to $1.8 billion in 2009.
“These are extraordinary times, requiring speed and decisiveness to address the current economic downturn,” CEO Klaus Kleinfeld stated. Web: alcoa.com �2009 FastenerNews.com
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