STAFFORD, TX -- Ducommun LaBarge Technologies will shutter a 33,000 sq. ft. EMS plant here as part of cost-cutting measures following a weak third quarter.
The site outside Houston, which primarily served the company's oil and gas market, is not seen as core to the EMS company's business operations.
DLT also will close a small administrative office in St. Louis and will take restructuring charges of approximately $800,000 related to the two site closings. DLT's net revenue fell 9% in the recently ended third quarter, and the firm swung to a net loss. Its fourth-quarter outlook is weak as well.
The company expects to save $2 million to $3 million annually once the sites are shuttered.
The Houston plant will cease operations at the end of October, while the St. Louis facility closure will be completed in the first quarter of 2016. The Houston plant was acquired as part of the acquisition of LaBarge in 2011.