American Standard (ASD) said Thursday it plans to eliminate 1,200 positions and close one manufacturing plant in a bid for efficiency and profits.
The Piscataway, N.J., maker of plumbing, automotive and air conditioning systems said its actions, to be implemented in 2001, would save the company more than $50 million a year but would result in a pre-tax charge of about $82 million in the fourth-quarter of 2000. However, the company said the charge will be offset by a gain from the recently announced sale of its Calorex water heater business and will have no impact on fourth-quarter results. Analysts, on average, are expecting American Standard to post fourth-quarter earnings of 81 cents a share, according to
First Call/Thomson Financial
, up from 73 cents a share in the same period last year.
American Standard employs about 58,000 people in 36 countries. The reductions will take place across its three business segments, the company said.
Shares of American Standard closed at $45.38 in Wednesday trading on the Big Board. Its shares have a 52-week low of $34.31 and a 52-week high of $49.75.