CHICAGO (AP) -- Building products manufacturer USG Corp. said Thursday that it is taking restructuring measures such as cuts to capital spending and jobs in response to the sagging construction market and falling economy.
USG said it expects the restructuring will save an estimated $125 million. It plans on sharply reducing capital spending by $190 million, from $240 million this year, to $50 million in 2009 and reduce one billion square feet of wallboard from its manufacturing capacity.
Last week, USG said it will cut 900 salaried positions, or about 20 percent of its salaried work force. The job cuts should lead to about $35 million to $45 million of severance costs.
"We are moving aggressively to cut costs and properly align our businesses for these extremely challenging conditions," said USG Chief Executive William Foote.
The company said it is also negotiating modifications of its unsecured credit agreement with banks over a requirement that it have $300 million of available cash and unused committed borrowing capacity.
Shares of USG fell 37 cents, or 4 percent to $8.84 Thursday.
