Despite Layoffs, Andersen Announces Profit Sharing
Andersen Corp. employees will receive their annual profit-sharing checks in mid-February, which this year will equal 22 percent of their salaries. The company will distribute the money to 6,000 workers, including those whose manufacturing positions were eliminated with layoffs January 2.
“Despite the significant downturn in the housing market, the combination of a broader portfolio of products and the prudent expense control enabled Andersen Corp. to generate a very respectable profit in 2006,” says Jim Humphrey, president and CEO. Further, he notes, layoffs are “always difficult actions, but they were necessary, especially given that the market correction is likely to continue into 2008.”
This year’s distribution was down from last year’s 26 percent. Profits have been shared annually at the company since 1914, with the exception of the years of the Great Depression. In the 1980s, profit sharing spiked to highs of 72 percent in 1986 and 84 percent in 1987.
Manufacturer Marvin Windows & Doors announced recently that it would share $15.7 million in profits with its nearly 3,500 employees.