Insituform Technologies Inc. said Monday that it will reorganize its European operations, cutting 35 jobs there as part of a plan to save $3 million annually.
The contractor, which rehabilitates sewers and underground piping systems, said the jobs will be cut across Europe. Insituform plans to exit some underperforming areas, combine certain operations and realign responsibilities and functions in its main European office in Paris.
According to a company regulatory filing in early 2009, Insituform had 1,550 employees at the end of 2008.
As part of its reorganization, the company bought a 25 percent minority interest in its cured-in-place pipe tube manufacturing operation in the U.K. which Danish company Per Aarsleff had owned. The two companies agreed on new guidelines for their 20-year joint venture in Germany as well.
Insituform said it is dividing its European operations into four regions, plus the joint venture. It is also leaving trenchless contracting markets in Belgium, Romania, Poland and Austria.
Insituform will report $4.2 million in fourth-quarter charges related to the changes.
The company said separately Monday that it will shutter its Corrpro business, which had painted U.S. Navy ships. The business had $800,000 in revenue for the first nine months of 2009, and Insituform said it will log a $500,000 charge in the fourth quarter related to the closure.
Insituform shares fell 97 cents, or 4.1 percent, to $22.93 in after-hours trading, after closing earlier up 97 cents, or 4.2 percent, at $23.90.