[clari.tw.electronics] Smith Corona to lay off 100 more employees

clarinews@clarinet.com (01/19/90)

	NEW CANAAN, Conn. (UPI) -- Smith Corona Corp., which reported a 14
percent dip in net income Thursday, said it would lay off 100 additional
employees at its Cortland, N.Y., facility because of expected soft
retail sales.
	The company reported net income of $12 million, or 40 cents a
share, in its second quarter ended Dec. 31, 1989, down from $14 million,
or 46 cents a share, in the same period the year before.
	Sales were about $129 million, up from $127 million in the second
quarter of the previous year.
	Because of an anticipated softness at the retail level, Smith
Corona said it would continue a shortened work week at its Cortland
facility ``until such time as inventory levels are fully in line with
	The company also said it planned to lay off about 100 additional
employees in Cortland. In August, Smith Corona announced it was laying
off 150 employees in Singapore and 300 employees in Cortland.
	For the first six months of the company's fiscal year, net income
was about $28 million, or 94 cents a share, up 9 percent from $26
million, or 86 cents a share, in the previous-year period.
	The 1988 results included charges of $2.5 million and $4.7 million
pre-tax, or 5 cents a share, and $1.6 million and $3 million after-tax,
or 10 cents a share, for the three months and six months, respectively,
related to a now-terminated supplemental performance plan, the company
	The performance plan was terminated with the Aug. 3, 1989, public
offering of stock, officers said. The company also said the 1988 results
were reported on a pro forma basis that had been adjusted for the public
offering and debt financing.
	``Despite a continued softening in the economy evidenced throughout
the retail sector, we were able to turn in a reasonable performance,''
said Smith Corona Chairman G. Lee Thompson.
	``Earnings for the quarter reflect a weaker retail environment than
in the prior year's quarter and inventory write-downs,'' Thompson added.
``Without these write-downs, results would have been almost equal to
last year's second-quarter levels before the supplemental performance
plan charges.''