U.S. Silica (SLCA) To Cut Costs, Idle Utica And Tyler Mines
Zacks Investment Research | Nov 24, 2019 09:57PM ET
U.S. Silica Holdings, Inc. (NYSE:SLCA) announced a reduction of roughly 230 employees in its workforce. The reduction equals roughly 10% of the company’s workforce and includes corporate employees as well as idling of both Utica and Tyler mines. Other facilities impacted but not idled by the action are Sparta, WI; Crane County, TX; and Festus, MO.
With the move, the company aims to boost efficiencies, and better align support staffing and operations, with current challenges in energy markets. Annual SG&A savings from the action and other cost reductions are anticipated to be $20 million. The workforce reduction is expected to reduce staffed O&G capacity by 7 million tons.
Per the company, the actions will likely protect margins and generate free cash flow in the competitive oil and gas completions market. Moreover, the move will also likely realign its cost structure and operational footprint to serve energy customers more efficiently and at the same time support anticipated growth of its Industrials & Specialty Products segment.
The company anticipates incurring $1.7 million in related severance costs in the fourth quarter of 2019.
Shares of U.S. Silica have plunged 67.4% in the past year against the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.