SPS Restructuring to Close 3 Plants, Cut 337 Jobs to Increase Profit

John Wolz

SPS Technologies Inc. announced a restructuring plan that includes closing three plants, cutting 337 jobs, relocating some operations and discontinuing others.
Ultimately, the Jenkintown, PA-based company expects the restructuring to boost annual operating profit by $8.8 million, while reducing its sales revenue by 1%.
The job cuts alone will reduce expenses $13.1 million.
� SPS will close its Las Vegas precision fastener and components plant, discontinuing some product lines and relocating others to established plants in Montreal, Salt Lake City and Nashville.
SPS also will close a pushrod plant in Smethwick, England, and transfer the line to a plant in Shannon, Ireland, and close its ferrite plant in Sevierville, TN, and transfer production to an Asian third-party supplier.
� Automotive fastener plants in Waterford, MI, and Cleveland, OH, will be further integrated and consolidated. The Waterford plant was known as Terry Machine when it was acquired in 1998.
� The precision tool business will integrate product lines.
� The specialty materials & alloys segment will phase out certain high-pressure ceramic core product lines to provide additional manufacturing space and kiln capacity.
SPS reported earnings rose 13% to $11.8 million for the first quarter of 2001, while sales increased 10% to $239.2 million.
According to a company statement, in the first quarter SPS �benefited from improved demand in the aerospace and industrial gas turbine markets and contributions from acquired businesses, which resulted in increased revenues and operating earnings for the aerospace fastener business and the specialty materials & alloys segment. The impact of these improvements was partially offset by lower earnings of businesses serving the automotive, industrial and electronics markets.�\
� 2001 FastenerNews.com