Cooper Industries, Ltd., Houston, TX, reported fourth quarter 2008 sales of $1.52 billion, down 1% from fourth quarter 2007. Profit decreased 38% to $111.1 million.
"As the quarter progressed, the credit crisis deepened with the economic deterioration in the U.S. and Europe spreading around the world. Cooper earlier announced its intention to reduce our work force by over 1,000 employees and to take a fourth quarter charge estimated to be in the range of $20 million to $22 million. As economic conditions deteriorated, we determined it was necessary to increase the reduction in work force to in excess of 2,200 employees globally and recorded a restructuring charge of $35.7 million," said Cooper Industries' CEO Kirk S. Hachigian.
Sales for the twelve months of 2008 were $6.52 billion, a 10% increase over 2007. Profit was down 8.7% to $632.2 million.
Electrical Products segment sales for the fourth quarter of 2008 increased 3% to $1.36 billion, compared with the fourth quarter 2007. Core revenues were flat for comparable periods with acquisitions contributing 6%.
Tools segment revenues for the fourth quarter of 2008 were $165.1 million, down 25%. Excluding the effects of currency translation, revenues for the quarter were about 20% lower than 2007 fourth quarter on declining industrial, retail and automotive demand.