Posted on 10/01/2003 9:11:52 AM PDT by Brian S
Ashland Will Eliminate 500 Salaried Jobs
COVINGTON, Ky. (AP)--Ashland Inc. is eliminating about 500 salaried jobs in a cost-cutting move meant to boost profits for the oil refining and chemical giant.
The cutbacks announced Wednesday follow the reduction of about 200 jobs earlier in the year, and the combined 700 cuts are expected to save Ashland an estimated $100 million annually. The cuts represent about 7 percent of Ashland's salaried employees.
Ashland's chairman and chief executive, James J. O'Brien, said cost cutting was a ``pivotal part'' of the strategy to produce stronger earnings for the company which also builds roads.
``Becoming a low-cost, operationally excellent organization is critical to serving our customers, enhancing our financial strength and restoring our ability to grow,'' O'Brien said in a statement.
The company said the cuts will occur companywide. Ashland said that 80 percent of the 500 jobs will be eliminated by Nov. 30.
Those cutbacks will result in approximately $18 million in pretax charges for severance and other costs in the company's just-completed fourth quarter, Ashland said.
Ashland said it absorbed $8 million in severance and related costs from the previous round of job cuts.
O'Brien said Ashland is looking for other ways to trim costs.
``We have a new vision, new mission, new operating principles, common values and a clearly defined business strategy,'' O'Brien said. ``That strategy is grounded in achieving a level of cost and efficiency that enables us to consistently outperform our peers.''
Ashland's operations include road construction, specialty chemicals, lubricants, car-care products, chemical and plastics distribution and transportation fuels. Brands include Valvoline motor oils, Eagle One appearance products, Zerex antifreeze and Pyroil performance products.
Ashland owns 38 percent of Marathon Ashland Petroleum, the nation's fifth-largest gasoline refiner and marketer. The rest is owned by Marathon Oil Co., based in Findlay, Ohio.
In morning trading on the New York Stock Exchange, Ashland shares rose 52 cents, or 1.6 percent, to $33.37.
AP-NY-10-01-03 1104EDT
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