Vulcan Materials To Cut 200 Jobs
BIRMINGHAM, Ala. (AP) — Vulcan Materials Co., the nation's largest producer of construction materials, said Monday that it will cut roughly 200 jobs as it consolidates operations in an effort to reduce its costs.
The job cuts will come mostly from overhead and administrative staff, while employees at its plants will be largely unaffected, the company said.
The company expects to wrap the consolidation effort in the first quarter of next year.
"This consolidation is another important step in our ongoing efforts to optimize operational efficiency and better position the company for improved performance," said Donald M. James, Vulcan's chairman and CEO. "We are very mindful of the impact this initiative will have on affected employees and will work with them to make this transition as smooth as possible."
The strategy calls for consolidating its business operations from eight divisions into four regional hubs in Birmingham; Atlanta; Jacksonville, Fla.; and Los Angeles.
Vulcan expects to save about $30 million annually in pretax costs. That would be on top of some $25 million it expects to save via other cost-cutting measures implemented earlier this year.
The company expects it will record a pretax charge in the fourth quarter of about $10 million — or 5 cents a share on an after-tax basis — due primarily to severance costs.
Vulcan shares ended the regular session down 65 cents, or 1.7 percent, at $38.13.