Sunday, December 28, 2008

Magna to lay off more workers at New Process Gear


By: Eric Reinhardt
12/16/08 11:34 AM
DeWITT - Magna Powertrain will lay off 216 hourly employees at its New Process Gear (NPG) plant in DeWitt next week, a spokeswoman for Magna International of America, Inc. said today.
The layoff period is described as "indefinite."
The job cuts reflect a combination of a considerable downturn in consumer demand for full-sized trucks, a corresponding reduction in customer production volumes, and the overall economic conditions facing the North American auto industry, according to a statement from Magna.
This round of layoffs follows 100 indefinite layoffs on Sept. 22 and 250 layoffs on July 2. Today's reduction drops the number of employees at the plant to approximately 1,450.
Magna International (NYSE: MGA) is a global auto-parts manufacturer. It owns Michigan-based Magna Powertrain, which operates the New Process Gear plant.
Magna lost $215 million, or $1.93 per diluted share, in the third quarter, compared to a profit of $155 million, or $1.38 per share, a year ago, the company announced Nov. 4.
Shares of Magna were up 27 cents at $29.35 per share in trading this morning.

Contact Reinhardt at ereinhardt@cnybj.com

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