Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, August 26, 1993 TAG: 9308260042
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
The New York-based chemical and paper products company said the voluntary job buyout is offered to employees 60 and older.
About 350 of Westvaco's 4,900 employees in 28 states are eligible. Of those, 30 to 35 work at the company's Bleached Board Division plant at Covington.
Under the offer, retiring workers will be credited five years to their ages for computing retirement plan benefits. The company also will contribute enough additional money so there would be no reduction in retirement plan or Social Security benefits prior to age 62.
Westvaco will provide medical and dental insurance at the same level of contribution as for active employees.
Westvaco also said its board has adopted three new accounting standards and established a special charge. In addition, it has taken into account the impact of a retroactive tax increase.
The net effect of these actions, Westvaco said, will be an increase of six cents a share in 1993 net income and an annual reduction of about $30 million or 27 cents a share in operating expenses.
Westvaco last week sold $150 million in 30-year bonds paying 7 percent. Substantially all of the net proceeds will be used for debt retirement, producing first-year savings of $6 million in interest.
Westvaco said it also plans to retire an additional $9 million of debt in the fall.
"The company's position is strong due to a strategy of providing products and services with distinctive value and supporting that strategy through continual emphasis on cost control and productivity improvements," said John A. Luke Jr. of New York, company president.
by CNB