Tenaris Cutting Some Salaries, Temporarily Closing Some US Facilities

   By Stephen Nakrosis 
 

Tenaris S.A. said Wednesday that it was taking actions amid the continued Covid-19 pandemic "to preserve adequate levels of operation while protecting the health and safety of our employees, fulfill our commitments to customers, strengthen the medical response capability in the local communities where we have our operations and ensure the financial stability of the company."

In an effort to mitigate the impact of expected lower sales, the company said, it is "working on a worldwide rightsizing program and cost containment plan aimed at preserving financial resources and liquidity and maintaining the continuity of our operations."

Tenaris said it will temporarily close facilities and production lines in the U.S., as it adjusts the level of its workforce and operations across the globe.

The company also said it would reduce pay for its board and senior management as it works to downsize its cost structure.

Tenaris will reduce its capital expenditures and R&D expenses by about $150 million compared to last year.

The company is also proposing to limit dividend payments in respect to fiscal year 2019 to a $153 million interim dividend payment made in November.

Tenaris is headquartered in Luxembourg and makes steel pipe products.

--Write to Stephen Nakrosis at [e-mail]

(END) Dow Jones Newswires

April 29, 2020 18:31 ET (22:31 GMT)

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