Hon Industries to Fire Workers to Cut Costs
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Hon Industries Inc., the largest U.S. maker of fireplaces and moderately priced office furniture, said it will fire 300 workers and close three plants because of decreased demand for its products.
The company said second-quarter profit dropped 16%, or 33 cents a share, to $19.6 million, matching forecasts. Sales fell 13% to $444.2 million.
Hon Industries said it will consolidate some factories and eliminate low-volume production lines in moves it expects will save more than $12 million a year.
The company will close its plants in Tupelo, Miss.; Williamsport, Pa.; and an undisclosed location. The company also enacted a hiring freeze and may eliminate unprofitable product lines.
The Muscatine, Iowa-based company took a second-quarter charge as part of the cost-cutting plan.
Hon Industries shares rose 1 cent to close at $24.54 on the NYSE.
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