PNM to Lay Off 15 Percent of Work Force
PNM to Cut 15 Percent of Work Force Over Next Year for Cost Savings; Affirms 2007 Outlook
November 02, 2007: 08:57 AM EST
NEW YORK (Associated Press) - PNM Resources Inc. will cut about 15 percent of its work force over the next year, including 150 positions immediately, the energy company said Friday.
The layoff is part of PNM's restructuring plan to cut costs and improve efficiency. The plan will save PNM about $35 million before taxes each year, not including costs. A portion of those savings will be reported in 2008.
The 165 jobs to be eliminated on Friday represent 5 percent of the company's 3,000 employees.
"The decision to reduce our work force was made after a comprehensive cost structure and process analysis," Chief Executive Jeff Sterba said in a statement. "The results showed that we excel in certain areas but there are other areas in which we can do a better job managing future costs."
The company is also automating some functions, like customer service, and streamlining areas like credit and collections, billing and meter reading.
PNM also affirmed its outlook for 2007 profit from ongoing operations of $1.30 per share to $1.40 per share, though said management expects results to be "in the lower end of the range."
Analysts polled by Thomson Financial expect earnings of $1.37 per share, on average.
Ongoing earnings exclude the impact of nonrecurring items and net unrealized mark-to-market gains and losses on economic hedges. Beginning in the fourth quarter, PNM will exclude hedging results from its ongoing earnings figures unless they are settled during the reporting period. The year's outlook does not include about 65 percent of 2007 hedging activity that will be realized the following year, Chief Financial Officer Chuck Eldred said in a statement. Top of page
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November 02, 2007: 08:57 AM EST
NEW YORK (Associated Press) - PNM Resources Inc. will cut about 15 percent of its work force over the next year, including 150 positions immediately, the energy company said Friday.
The layoff is part of PNM's restructuring plan to cut costs and improve efficiency. The plan will save PNM about $35 million before taxes each year, not including costs. A portion of those savings will be reported in 2008.
The 165 jobs to be eliminated on Friday represent 5 percent of the company's 3,000 employees.
"The decision to reduce our work force was made after a comprehensive cost structure and process analysis," Chief Executive Jeff Sterba said in a statement. "The results showed that we excel in certain areas but there are other areas in which we can do a better job managing future costs."
The company is also automating some functions, like customer service, and streamlining areas like credit and collections, billing and meter reading.
PNM also affirmed its outlook for 2007 profit from ongoing operations of $1.30 per share to $1.40 per share, though said management expects results to be "in the lower end of the range."
Analysts polled by Thomson Financial expect earnings of $1.37 per share, on average.
Ongoing earnings exclude the impact of nonrecurring items and net unrealized mark-to-market gains and losses on economic hedges. Beginning in the fourth quarter, PNM will exclude hedging results from its ongoing earnings figures unless they are settled during the reporting period. The year's outlook does not include about 65 percent of 2007 hedging activity that will be realized the following year, Chief Financial Officer Chuck Eldred said in a statement. Top of page
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