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| PLS > SEC Filings for PLS > Form 8-K on 24-Feb-2009 | All Recent SEC Filings |
24-Feb-2009
Costs Associated with Exit or Disposal Activities, Financial Statements and
On February 24, 2009, PPL Corporation ("PPL" or the "Company") issued a press release announcing that a cost reduction initiative has resulted in the elimination of approximately 200 management and staff positions across the Company's U.S. operations, or approximately six percent of the Company's non-union, U.S. workforce. It is anticipated that separation of most of the affected employees will be completed by the end of February 2009.
As a result of the workforce reductions, the Company will take a one-time after-tax charge in the first quarter of 2009 of between $12 and $15 million, or $.03 to $.04 per share. The costs to be incurred by PPL will consist primarily of enhanced pension and severance benefits under PPL's Pension and Separation Policy. PPL estimates that the workforce reductions will reduce pre-tax annual operating expenses by $20 to $25 million.
As part of the total workforce reduction, PPL Energy Supply, LLC will eliminate certain management and staff positions and record a one-time charge for the three months ended March 31, 2009. The amount of that charge has not been determined, but will include an allocation of costs associated with the elimination of positions at PPL Services Corporation, the wholly owned subsidiary of PPL that provides shared services to PPL and its subsidiaries.
As part of the total workforce reduction, PPL Electric Utilities Corporation will eliminate certain management and staff positions and record a one-time charge for the three months ended March 31, 2009. The amount of that charge has not been determined, but will include an allocation of costs associated with the elimination of positions at PPL Services Corporation.
(d) Exhibits
99.1 - Press Release, dated February 24, 2009, announcing PPL workforce reductions.
Forward-looking statements: The Company's expected costs and savings in connection with its workforce reduction are subject to certain assumptions and uncertainties, and actual costs and savings could differ materially from the Company's current expectations.
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