Jan. 27--Cooper Industries expanded layoffs originally expected to include 1,000 workers to more than 2,200 as the economy worsened at the end of the year, the Houston-based company announced today.

The added layoffs meant severance packages comprised a bigger drain on annual and fourth-quarter earnings than previously expected. A company financial filing said restructuring charges related to the cuts, initially estimated in October at up to $22 million, have risen to $35.7 million.

"The global recession resulted in weakness in all of our markets and geographies," Chief Executive Officer Kirk Hachigian said in a statement. "As the quarter progressed, the credit crisis deepened with the economic deterioration in the U.S. and Europe spreading around the world."

About 200 of Cooper's 30,000 employees are in Houston. Two local jobs were cut in October, and no local workers would be included in the latest round, the company said.

On a conference call with analysts, Chief Financial Officer Terry Klebe said the cuts would result in $60 million in savings in 2009.

It'll be longer than that before a big rebound for Cooper, which depends on residential and commercial construction to drive demand for its tools and electrical equipment, Hachigian said.

"We see no signs of recovery until 2010," he said.

The company said it expects a 10 percent to 15 percent revenue drop in 2009, with its tools segment being hit the hardest. It predicted 2009 earnings per share of $2.45 to $2.80, down from $3.60 in 2008.

The job cuts represented 8 percent of the company's salaried workers and 7 percent of hourly workers and were spread across the entire company, hitting all business segments and geographies, Klebe said. Cooper also has reduced the number of its part-time employees and furloughed others.

But it could have been worse, especially as other industrial companies have cut 10 percent or 15 percent of workers, said Christopher Glynn, an analyst at Oppenheimer & Co.

"The economy is dictating their hand," he said.

Cooper's revenue grew from $5.9 billion in 2007 to $6.5 billion in 2008, but its profit fell from $692.3 million to $632.2 million during the same period, a 2 percentage point drop in profit margin.

The fourth quarter of 2008 was especially bad. Net income was down to $111.1 million from $179.3 million for the same period a year ago, a 38 percent drop.

Shares of Cooper were up 51 cents to $27.65 in trading today on the New York Stock Exchange.

brad.hem@chron.com

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