(RTTNews) - Carpenter Technology Corp. (CRS) announced restructuring, which includes reducing approximately 20% of the company's total global salaried positions. This is expected to generate approximately $30 million to $35 million of annual cost savings. The company expects to record a pre-tax charge of approximately $10 million in the fourth quarter of fiscal 2020.
In addition to the restructuring, the company has taken other actions which are expected to generate $60 million to $70 million of annual cost savings. This includes: a global hiring freeze and deferring annual merit increases; and temporary furloughs for certain production, maintenance and salaried employees. The company is also reviewing and prioritizing capital investments to target existing and future growth markets.
Carpenter Technology Corp. has decided to withdraw its previously provided segment operating income outlook for the current quarter. The company expects to generate a meaningful amount of cash flow in the fourth quarter of fiscal 2020.
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