Windstream announces layoffs, then 4Q growth; Burnham 2013 sales down, as expected
Telecommunications company Windstream Corp., which has operations in Lancaster County, announced year-to-year growth Thursday just days after it said it would eliminate about 3 percent of its workforce.
The layoffs announced on Feb. 21 include five positions at the company's Ephrata-area operations. David Avery, vice president of corporate affairs for Little-Rock, Ark.-based Windstream, said the company has 110 employees in Lancaster and Berks counties.
The company has 485 employees in Pennsylvania and 13,500 total.
The layoffs are expected to be complete by Monday, and 175 of them are through a "voluntary separation initiative," according to the company.
The layoffs are expected to save $20 million, though the company expects to spend between $9 million and $10 million in the first quarter for severance benefits.
The adjusted earnings of 9 cents per diluted share the company announced for the fourth quarter were on par with analyst estimates, according to Yahoo Finance.
The company reported $1.5 billion in total revenue and sales for the quarter and net income of $118 million, a big increase from the $10 million in net income for the fourth quarter of 2012, although sales were flat between the two periods.
In 2009, Windstream bought Ephrata-based D&E Communications. The company trades on the Nasdaq under the ticker symbol WIN.
Manheim Township-based Burnham Holdings Inc. said it expected to have slower earnings in 2013 because of 2012's weather-boosted sales, but it still reported 24 percent gross profit Thursday, equaling the 2012 mark.
Burnham, the parent company of a group of subsidiaries that manufacture boilers and heating, ventilation and air conditioner products and accessories, said net sales for 2013 were down 7.1 percent compared to 2012.
Net income for 2013 was at $5.3 million, compared to $8.2 million in 2012. The company experienced high demand for its products at the end of 2012 and into early 2013 because of the damage from Sandy, the devastating storm that hit the Mid-Atlantic in October 2012.
Earnings per diluted share were at $1.18 for 2013 against $1.83 for 2012.