Hutchinson Tech says layoffs, plant closing helped company break evenby Ambar Espinoza, Minnesota Public Radio
Collegeville, Minn. — Disk drive component maker Hutchinson Technology says the company broke even in the latest quarter primarily through layoffs and the closing of a plant in the past year.
In a conference call for investors, company leaders said Hutchinson Technology will move forward in 2010 with a stable financial position and a sizeable chunk of debt reduced. The company's gross profit improved from $17.1 million a year ago to$ 17.5 million this year.
Next year, the company plans to spend $15 million to establish its Thailand assembly operation. That plant is expected to keep costs low and improve the company's competitiveness.
The company, which is the city of Hutchinson's largest employer, has been hit hard by the major downturn in the market for personal computers. The company has cut more than 40 percent of its Midwest workforce since last fall.