Cuts hitting LV-area Timet plant

Monday, Jan. 31, 2000 | 11:26 a.m.

About 10 percent of the work force at the Henderson plant of Titanium Metals Corp. has been laid off in the past few months and more cuts are expected.

The company, troubled by a weak market for manufacturing titanium to produce aircraft, is cutting 250 jobs company wide. In Henderson, where the company's plant employs 418 people, 40 people have lost their jobs since early December. More cuts are expected.

"We can't give an exact number of how much more reduction there will be," Loren Taylor, human resources manager for Timet in Henderson, said Friday.

Cuts are affecting both hourly and salaried management employees. Taylor said hourly employees that are laid off have recall rights for two years, meaning they would be invited back to Timet without a loss in seniority if the market improves and jobs are added.

Salaried employees don't have those rights, Taylor said.

The company has offered placement assistance and job retraining programs. Timet also has asked the state Division of Employment Training and Rehabilitation to assist workers.

Taylor said the Henderson Timet plant is responsible for the production of titanium ingots used in the manufacturing of aircraft parts. He said most of the reductions to date have occurred in the plant's "melt shop" where titanium is melted into ingots.

Denver-based Timet warned last month that a slump in sales to the aerospace industry could result in earnings losses and production plant layoffs. At the time, officials weren't sure if the Henderson plant would be affected.

Timet officials said the company's problems stem from its top customer, Boeing Co., having a stockpile of raw materials and wanting to renegotiate its contracts with all titanium suppliers.

Last week, Timet reported fourth quarter sales of $105.5 million, the lowest quarterly sales total in four years and 6 percent below third-quarter levels.

The company reported losses of 28 cents per share -- 56 cents after an $11 million special charge -- for the quarter that ended Dec. 31. In the fourth quarter of 1998, the company had a net loss of 8 cents a share after restructuring charges.

The $11 million special charge in the most recent quarter included $4.5 million in restructuring charges, $2.3 million in losses in investments in joint venture start-ups and $4.3 million of charges relating to sales of slow-moving inventories.

The outlook for 2000 is weak. Timet said orders under the Boeing contract are far below contract requirements and the company has received virtually no orders from Boeing for the current year.