Intrepid Potash to cut workforce as potash prices fall
Intrepid Potash Inc. is implementing a number of cost-savings initiatives to better align its cost structure with the current business environment, most specifically the declining potash prices experienced since mid-2013 and the conclusion of its major capital projects.
The cost-savings initiatives include the elimination of approximately 7 percent of the workforce, including capital-project-related support associated with the company's major capital projects, which are nearly complete. Additional cost-savings measures involve decreases in executive compensation, reduction in the use of outside professionals, and cutbacks in other general and administrative expense items.
Intrepid estimates saving approximately $15 million annually from these initiatives, with the majority being in general and administrative expense and the remainder being cost of goods sold. The workforce reduction is expected to result in a first quarter 2014 pre-tax charge of approximately $1.5 million to $2.0 million.
"These are difficult, but necessary decisions. The changes we have made better position Intrepid in today's market environment and enhance our long-term competitiveness," said Dave Honeyfield, Intrepid's president and chief financial officer. "We have taken a thoughtful approach to ensure that we are balancing the current market environment with what we see as a healthy long-term business model with a continued commitment to safe operations. We are treating those impacted by these changes with the respect and fairness they deserve, while creating value for our shareholders by running Intrepid as efficiently as possible."
- Critics of Dow herbicide sue U.S. EPA over approval
- Survey shows big data use increasing
- Partnership to collaborate on bio-stimulants
- DuPont Pioneer celebrates production expansion in Ontario
- No-till may not bring hoped-for boost in global crop yields
- Crop markets moved mostly higher again Thursday night
- How much corn can the ethanol industry use?
- Economist: Taxing P could reduce risk of algal blooms
- Commentary: Government wants farmers to quit farming
- Ag markets made a generally mixed showing Thursday night
- What is the relationship between maturity group, yield?
- Commentary: Ambulance-chaser lawyers take on Syngenta