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The Markets April 2, 2009
Buffalo Manufacturer Suspends 401(k) Match
A Buffalo, New York-area building products and steel processing firm has suspended its 401(k) match because of a slumping business climate driven by slowdowns in the housing and auto sectors.
Reported by Fred Schneyer
A Buffalo News report said Gibraltar Industries informed employees that it will discontinue the matching contributions indefinitely on April 17.
According to the paper, the company posted the biggest quarterly loss in its 16 years as a public company during the fourth quarter and is facing further losses during the quarter that ended Tuesday. The report said the company has also made significant cuts to its headquarters staff, suspended its $0.20 per share annual dividend to save $6 million, and cut its capital spending plans.
“While this has not been an easy decision for the company to make, it is a necessary business decision in light of the current economic environment,” the company said in a memo to employees, according to the newspaper.