Posted on 02/28/2015 7:21:12 AM PST by thackney
Diesel engine and gas turbine maker Dresser-Rand Group is cutting 8 percent of its 8,100-employee workforce around the world in coming weeks, the company said Friday, trimming operating costs as falling crude prices have crushed profits in the oil service sector.
The Houston firm, which makes oil industry tools including compression equipment and steam turbines, said the plan will cost $50 million in severance and other charges as it divests assets this year. But its “flexible” manufacturing business will enable the company to start realizing savings from fixed costs this year, it said.
“While current market conditions may generate discomfort in the industry, we believe the company is structurally well placed with its flexible manufacturing model to implement an efficient and a relatively non-disruptive restructuring plan,” CEO Vincent Volpe Jr. said in a written statement.
Dresser-Rand noted the market’s “prevailing view” is that oil prices will remain low. Last September, Dresser-Rand had agreed to sell itself to German industrial conglomerate Siemens AG for $7.6 billion, including debt. The company said the market outlook, not the pending merger, prompted the layoffs and the divestments.
The company banked a profit of $46.2 million, or 60 cents a share, in the October-December period, compared to $32.8 million, or 43 cents a share, in the same period the year before. It said it expects a relatively stable year for its sales, even though its fourth-quarter margins were hit by falling oil prices and, in overseas markets, the strength of the U.S. dollar.
Siemens last year had inked the deal to buy Dresser-Rand in a bid to take on GE and other rivals in the U.S. energy market.
welcome to Odungoville
Texas braces for massive layoffs amid oil slump
http://www.cbsnews.com/news/texas-braces-for-massive-layoffs-amid-oil-slump/
February 27, 2015
At this nearby employment center, the number of job-seekers has more than doubled in the last few weeks, says CEO Willie Taylor.
“I’m not going to say the boom has gone bust, but I say it’s a slowdown in the area,” Taylor told me.
It’s estimated Texas could lose 140,000 direct and indirect energy jobs by midyear....
Halliburton list shows layoffs hitting all levels of oil patch
http://www.click2houston.com/news/halliburton-list-shows-layoffs-hitting-all-levels-of-oil-patch/31438542
A list obtained by Channel 2 Investigates highlights how layoffs in the oil industry have moved well beyond derricks and offshore oil rigs. Low crude prices have prompted companies to lay off thousands of workers.
“There’s a lot of fear, the rumor mill is running full time,” said Robert Harrold, who was recently laid off from Halliburton.
Harrold said he was a high level member of Halliburton’s IT department and was in the middle of a project last week when he was asked to step away from his desk and go to a meeting.
Middle of working on things and my manager’s manager comes by and I’m gone,” said Harrold. “I was told just that the oil prices are down and business is hurting.”
Asarco plans layoffs in Arizona, cites fall in copper price: USW official
http://www.platts.com/latest-news/metals/louisville-kentucky/asarco-plans-layoffs-in-arizona-cites-fall-in-21043412
US copper producer Asarco has told the United Steelworkers union it plans to carry out layoffs at three operations in Arizona soon, according to a union official.
“Asarco management has notified us that it plans to lay off up to 160 people” at the Ray and Mission mines and Hayden mill, all in Arizona, the official, who asked not to be identified, said Tuesday.
It is unclear exactly when the cutbacks will commence, the official added, although it is expected to be soon.
The USW is attempting to find out more information about the layoffs from the Tucson, Arizona-based company.
The layoff notice caught the USW, which represents most of the nearly 2,000 Asarco hourly employees in the US Southwest, by surprise.
The company, a subsidiary of Grupo Mexico, is blaming the layoffs on market conditions, in particular falling copper prices, the official said.
Eighty full time workers are being cut at the Case New Holland Industrial plant in Fargo.
The indefinite layoffs at the CNH plant are expected to begin next month and be completed by the end of April.
Employees were notified Thursday.
Forty full-time workers were laid off late last year.
A company spokesperson says they are responding to “market conditions.”
The USDA predicts a 30% cut in farm income this year, the lowest level since 2007.
CNH is the fifth largest employer in the metro.
Some think Siemens over paid for Dresser.
TimkenSteel to lay off 52 as low energy prices cut steel demand
http://www.ohio.com/business/jim-mackinnon/timkensteel-to-lay-off-52-as-low-energy-prices-cut-steel-demand-1.570558
The flip side of lower energy prices will cost more than 50 TimkenSteel workers their jobs, at least temporarily.
TimkenSteel Corp. on Friday said it will lay off 52 workers at its Faircrest, Gambrinus and Harrison steel plants in Canton, effective March 1. The company cited as the main reason lower energy prices, which reduces demand for its steel.
Earlier this month:
Siemens to Cut 7,800 Jobs Worldwide
http://www.nytimes.com/2015/02/07/business/international/siemens-job-cuts.html
Timing was an issue:
Siemens expanded its energy operations last year by buying Dresser-Rand (DRC) for $7.6 billion — only to see the oil prices halve within six months.
http://money.cnn.com/2015/02/06/news/companies/siemens-cuts-jobs/
Meantime gas is up 70 cents a gallon in two weeks in So. Cal.
:: Dresser-Rand Group is cutting 8 percent of its 8,100-employee workforce ::
Translat: 8% of 8100 employees means...648 employees are on the dole in Houston and else-where.
If you are “competing” for employment in the O&G industry...where do you stand?
Yep, I’m looking for a full-time gig but now the pool has increased in size.
Welcome to the socialist-republic comrade.
“It’s estimated Texas could lose 140,000 direct and indirect energy jobs by midyear....”
No problem, there are lots of ten an hour, five hour a week, temporary, no benefits openings. Just live in a hollow log and eat grubs.
Refinery strike shut down only one refinery, in CA, along with the Refinery explosion. Together nearly 20% capacity is gone from CA along with their special recipe requirements that make it more difficult to bring in gasoline from other area.
Petroleum refinery outage in California highlights markets’ quick price reaction
http://www.freerepublic.com/focus/f-news/3262614/posts
I work in the compressor industry. Big recip ones, that service pipelines and petro-chem plants. Dresser is a customer of ours. We have also had layoffs this last week.
Fundamental transformation.
As workers are transitioned from the private sector to the public sector makework programs, expect to see “jobs” allocated based on victim status. Already done with regular government workers and any work done by government contract; this will make even more work “government contract” (as the only one left with money).
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