GUELPH, Ont. – Armtec Infrastructure Inc (TSX:ARF) is cutting 270 jobs, or 14 per cent of its workforce, by the end of this year.
The company based in Guelph, Ont., says the restructuring initiative will cost $5 million but improve earnings over the next 12 to 24 months.
Armtec previously suspended its dividend to shareholders due to financial losses.
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The company makes construction materials such as precast concrete and tubing.
Its business was hurt early this year by an unusually late and wet spring across the country.
Third-quarter revenue for the summer months was $143.4 million, an improvement from the second quarter of 2011 and about the same as the third quarter of 2010.
Net loss for the third quarter was $52.3 million or $2.18 per share, compared with a profit of $8.8 million or 40 cents per share a year earlier.
The loss included a non-cash impairment charge of $50.2 million, to reflect the reduced value of its goodwill – an intangible asset that is diminished when the long-term earning power of a business is impaired.
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