PHILADELPHIA — Scott Paper Co. announced its third restructuring in four years Wednesday, saying it will cut another quarter of its work force to try to bring costs in line with those of competitors.
With the plans to cut 8,300 jobs, Scott joined other big manufacturers and consumer products companies that have made drastic payroll cuts and closed factories recently in hopes of catching up with more productive rivals.
The cuts, through a combination of layoffs and voluntary retirements, will reduce Scott's payroll to 24,700 from 33,000 within two to three years. About 4,500 of the 8,300 cuts will be in foreign operations and affiliates.
The company said it will take a $381-million restructuring charge after taxes, leaving a net loss for the three months ended Dec. 25 of $370.3 million, or $5.01 per share. During the same period in 1992, the company made $44.8 million, or 61 cents a share.
Sales fell 6% to $1.2 billion, from $1.28 billion.
"They had told us they were going to take a charge, but I would say that the magnitude of the charge was larger than expected and the reduction in head count was certainly larger than expected," said Chip Dillon, a paper and forest products analyst with Salomon Bros. Inc.
For the year, Scott reported a loss of $277 million, or $3.75 a share, on sales of $4.75 billion. Excluding the restructuring charge and other special charges, the company said it earned $117.6 million, or $1.58 a share. In 1992, Scott made $167.2 million, or $2.26 a share.
Sales fell to $4.75 billion from $5.09 billion.
Scott shares surged $2.125 to $45.50 on the New York Stock Exchange.