Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Seagate Technology - Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (742)	3/25/1999 5:12:00 PM
From: Duker	Respond to of 1989

Hutchinson Technology to Temporarily Reduce Work-Force by Approximately 550 Employees Revised Demand Forecasts and Improved TSA Manufacturing Efficiencies are Primary Reasons for the Temporarily Work-Force Reduction Company Expects 2nd Quarter Earnings to Be in Line With Market Expectations HUTCHINSON, Minn., March 25 /PRNewswire/ -- Hutchinson Technology Incorporated (Nasdaq: HTCH - news) today announced that it will temporarily reduce its work-force by approximately 550 production employees, effective this week. The reduction will be primarily split between the company's facilities in Hutchinson and Eau Claire, Wis., with a smaller reduction in Sioux Falls, S.D. The company employs approximately 8,500 people. The company said it had been adding to its production work-force in anticipation of significant order increases for delivery primarily in its fiscal third quarter (ending June 26). In the last week customers significantly reduced their anticipated demand. In addition, efficiency in producing certain TSA suspensions has improved more quickly than expected. ''While we still expect shipment levels in our third quarter to exceed those of our second quarter, the decrease from our earlier expectations, coupled with our improving production efficiency, temporarily leaves us with too many production employees until customers again increase their demand,'' said Wayne Fortun, president and chief executive officer of Hutchinson Technology. ''Deciding to reduce our work force was difficult, even if the reduction is temporary,'' continued Fortun. ''We hope to see all our employees back in our production areas as soon as possible.'' The company will seek volunteers for this temporary work-force reduction but, generally, seniority will be the basis for determining which employees will be laid off at each facility. All employees affected will continue to receive company health benefits and holiday pay, and will continue to accrue vacation time. Despite the recent reduction in demand and with one week in its fiscal second quarter remaining, the company expects its earnings will be in line with market expectations. The company will announce its second quarter results after market close on April 20. This announcement contains forward-looking statements regarding demand for and shipments of the company's products, the company's manufacturing capacity and efficiencies, the company's need for and ability to rehire its work-force, and the results of operations of the company. These statements involve risks and uncertainties. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of fluctuating order rates and product mix, slower or faster customer acceptance of its new products, difficulties in expanding capacity, changes in manufacturing efficiencies, inability to obtain sufficient staffing levels, and the other factors described from time to time in the company's reports filed with the Securities and Exchange Commission, including but not limited to the company's Registration Statement on Form S-3, filed on January 8, 1999. Hutchinson Technology is the leading worldwide supplier of suspension assemblies for disk drives.