From Rubber & Plastics News
Minneapolis, Minnesota -- Graco Inc. said it will lay off 150 workers by early 2009 in response to declining economic conditions.
Patrick McHale, Graco's president and chief executive officer, said the company's fourth quarter incoming order rates were 15 percent to 20 percent below the comparable 2007 period.
The manufacturer of spray coating and polyurethane dispensing equipment expects to take a pretax charge of $5 million related to severance and early retirement costs in the fourth quarter of 2008. It estimates the company's cost structure will go down by $9 million.
Graco also is reducing capital expenditures and discretionary spending to further control costs but did not disclose how and how much.
* Separately, Graco's European unit has finished construction of an extension to its warehouse at Maasmechelen, Belgium.
The last phase is construction of a training centre, which will be completed in March 2009, and will have classrooms for training, general meetings and customer presentations. Graco said it will also add a hands-on training space and a demonstration spray booth, and a laboratory for future product testing/development.