United Stationers Inc. (USTR) said it will eliminate about 150
positions through early retirement and work force realignment
programs in an effort to control costs.
The business product distributor, which employs about 5,700
people, plans to finish the realignment by the second quarter and
sees annual savings of $4 million to $5 million beginning in the
second half.
The company expects severance and other charges of $9 million to
$10 million before taxes during the fourth quarter.
United Stationers also expects the move to take about $12
million off its vacation pay liability in the fourth quarter, to be
recorded as an offset to operating expenses.
Despite an increase in third-quarter earnings, the company said
last month that operating expenses were up and it was looking to
tightly manage costs. Chief Executive Richard W. Gochnauer also
said last month he would retire in May.
Shares were down 32 cents in recent trading to $64.47 and are up
6.6% in the past 12 months.
-By Andrew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com