May 29--Worthington Industries is cutting pay and benefits, steps that it hopes will be temporary as it tries to endure a drop in orders from automakers, the company said yesterday.

The Columbus-based steel processor also said it would reduce its quarterly dividend to 10 cents per share, down from 17 cents, and it would shut four of its plants for a week in July.

Salaried employees will see pay cuts of 3 percent to 20 percent, with the deepest cuts felt by employees with the highest salaries. The chief executive will take a 25 percent cut.

Holiday pay will be suspended for employees who now qualify for it, which includes nearly all of roughly 7,000 employees.

The company is also suspending matching payments for its 401(k) retirement plan for all employees.

The pay and benefit changes will be in effect for June, July and August. A spokeswoman said the temporary changes were made so that the company would not need additional layoffs. Late last year, Worthington announced about 800 job cuts.

The company's four steel-processing plants, including the one on the North Side, will shut down the week of July 6.

"The extended summer shutdowns announced by General Motors and Chrysler have pulled volume down deeply in our steel-processing business," said a statement from John P. McConnell, chairman and chief executive officer. About 25 percent of Worthington's sales are to the auto industry.

"We expect our volumes to improve as Chrysler and GM return to regular production schedules and their future becomes more clear," he said.

An estimate of savings from the cuts was not available.

Worthington had record-high quarterly profit last summer, followed by record losses in the fall. For the most recent quarter, ending in February, the company returned to profitability, though barely, with net income of $1.6 million.

Late last year, Worthington announced layoffs of more than 10 percent of the work force. The company said it would close plants in Louisville, Ky.; Renton, Wash.; and Lunenburg, Mass., while temporarily idling plants in Miami and Phoenix.

dgearino@dispatch.com

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