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A. M. Castle & Co., Franklin, Park, IL, a global distributor of specialty metal and plastic products and services, announced a series of cost reduction initiatives amid continued challenges in the global economy and the metals market. The additional cost reduction measures include reduced work weeks and furloughs, suspension of the Company's 401(k) contributions, and executive salary cuts of at least 10% resulting in a total cash compensation reduction of approximately 20%.
In March, the company announced its intention to reduce 2009 operating expenses by at least $45 million. With the latest additions to its cost management efforts, a $65 million operating expense reduction in 2009 is expected, a reduction of over 20%.
The company also announced plans to further reduce capital expenditures in 2009 to strengthen the company's liquidity position.
Our Company is going through unprecedented change in a very challenging environment and we are asking Castle employees to make many sacrifices. However, we are taking these measures with the goal of sustaining the company for a strong future for our shareholders, customers and our employees,' said Michael Goldberg, president and CEO.