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One Plant to Close and 1,200 to Lose Jobs at American Standard

PISCATAWAY, NJ-American Standard Cos. Inc. has announced today (Dec. 28) that it will close one manufacturing plant and lay off 1,200 people in an effort to implement an operational consolidation and streamlining plan.

By Amy Vaughn | Updated on December 28, 2000

PISCATAWAY, NJ-The company known best for toilets, car parts and air conditioners has announced today (Dec. 28) that it is implementing an operational consolidation and streamlining plan that will leave 1,200 people without jobs in the new year and one of its manufacturing plants’ doors closed. This quarter the company will take a pre-tax charge of approximately $82 million, but company spokespeople say this will be fully offset by the sale of its Calorex water heater business. The changes are expected to spell annual savings of $52 million, according to the company.

This October the company has announced record third quarter sales, operating margin and earnings. At the time, chairman and CEO Frederic M. Poses had commented, “Looking ahead, we’re on track to achieve our annual 15% earnings growth target as well as our sales, margin and cash flow goals.”

Now he comments in the latest announcement, “These changes will eliminate job duplications and bring our operations closer to customers, enhancing our efficiency and competitive position across all business lines.” He added that he believed the $52 million annual savings would be on an “ongoing basis.”

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