ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Thursday, January 23, 1997 TAG: 9701230056
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: GREG EDWARDS STAFF WRITER
AMP Inc. of Harrisburg, Pa., reported Wednesday that it lost $40million during last year's fourth quarter because of a one-time, pretax charge of $195million related to the company's restructuring, including closing its Roanoke operations.
AMP, a leading maker of electrical and electronic connection devices, announced Jan. 8 that it was closing its computer connector plant in Roanoke and laying off 450 people. The company said it plans to lay off roughly 1,000 as it closes or consolidates factories in Pennsylvania, New York and California.
The restructuring should save the company roughly $50million a year after it is fully implemented, AMP said in its earnings statement.
The company's fourth-quarter loss - equal to 18 cents per share of common stock - compares with a profit of $113.8million, or 52 cents a share, during the same period in 1995. Fourth-quarter sales were $1.4billion, an 8 percent increase from a year earlier.
The company explained that it decided to restructure because of a decline in earnings during the second half of 1996. The company reported sales of $5.47billion in 1996, a 5percent increase from 1995. Its earnings for 1996 before the restructuring charge were $415million, compared with $427.3million the year before. Yearly earnings after the charge were $287million, or $1.31 per share.
In addition to closing its Roanoke plant on Hollins Road, AMP is closing another connector plant in McSherrystown, Pa. AMP had operated a machine shop on Kimball Avenue in Roanoke but consolidated it with the Hollins Road plant last year. The company will close three other plants.
Management classified 1996 as a "disappointing year" with the sales increase much less than the company had planned.
LENGTH: Short : 40 linesby CNB