The Fort Worth Star-Telegram reports http://www.dfw.com/mld/dfw/business/14268033.htm that key Boeing supplier Vought Aircraft Industries has announced it will cut up to 600 people from its workforce in and around Dallas, trying to reverse a $230 million loss in 2005.
Key Quote, from a statement by CEO Elmer Doty: “‘What I am announcing is difficult but necessary, given our situation. … Our situation is simple — we are spending more than we are taking in. We have to fix this.’”
Key Quote from the Star-Telegram: “The action comes as Doty tries to stanch Vought’s losses, which have mounted over the past two years after the privately held company undertook a restructuring plan aimed at moving work from plants in Stuart, Fla., and Nashville to its Dallas and Grand Prairie facilities.”
The restructuring has not worked as planned, and Vought has steadily lost money, the paper reported. In December, Vought reversed course and said the Florida and Tennessee plants would stay open indefinitely.
Vought could be in hot water with the state of Texas, the Associated Press reports. http://www.grandforks.com/mld/grandforks/business/14269902.htm In 2004, the state gave the company $35 million in return for a promise to create 3,000 new jobs. Vought planned to do that, in large part, by shutting down those plants in Florida and Tennessee and moving the work down to Texas.
Key Quote: “The company has added 1,200 jobs, including 750 that have lasted more than a year, according to Kathy Walt, a spokeswoman for (Texas Gov. Rick Perry) … Walt said state officials expect Vought to meet terms of the deal, which she said includes provisions allowing the state to take back the money if the company fails to meet job targets.”
Here’s a link to Doty’s statement. http://www.vought.com/newsFactGallery/releases/2006/040406.htm You’ll note it doesn’t mention Vought’s Everett plant — Countour Aerospace. I put a call in to Dallas to ask about that, but I haven’t heard back yet.
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