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Sensient to close two plants, cut 140 employees
Sensient Technologies Corp. said it will close two plants, lay off 140 workers and eliminate two product lines as part of a previously announced restructuring plan.
The move is being driven by lower sales of inkjet products, Sensient said.
The company did not identify the plants to be closed. Its only Wisconsin plant is a flavor enhancers and extract plant near Beaver Dam in Juneau, according to its annual report. The layoffs will occur across all operating groups.
As a result of the plan, the Milwaukee-based supplier of flavors, colors and fragrances said it will take a $9.6 million charge in the fourth quarter, the company said in a regulatory filing Tuesday.
Although some specific elements of the plan are still being evaluated, Sensient estimates that the final plan and other related actions will produce annual savings of approximately $13 million. Management estimates that $10 million of savings will be achieved in 2006.
Sensient also expects capital expenditures of approximately $2.4 million will be required to implement these plans.
Sensient announced plans to restructure Oct. 17 when it reported a 35 percent decline in third-quarter profits. The firm said it is being hurt by a sharp rise in costs for raw materials and energy, which reduced third-quarter earnings by about 6 cents per share.
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