UPDATED: Paul Mueller Co. lays off production workers

The recession has hit another Springfield business stalwart.

Paul Mueller Co. laid off roughly 200 production workers on Thursday, according to information provided by an unnamed employee to Springfield Business Journal's media partner, KSPR-TV.

The workers were told that they had been laid off indefinitely, according to the report. The employee said the latest cut was the largest in a series of employment cutbacks this year, adding that employment levels have dropped to roughly 400 from about 1,200 at the beginning of the year.

The employee also said that some of the staff members laid off were told they may be brought back after the beginning of the year.

KSPR said Paul Mueller management turned down repeated requests for interviews.

The company sent out a press release Friday saying that the layoff was "in

conjunction with the plant holiday shutdown that has been scheduled for several weeks." The release said the plant will reopen Jan. 11, and "the company expects to recall employees beginning" on that date.

Paul Mueller has confirmed layoffs earlier this year. According to previous SBJ coverage, the company laid off 46 Springfield plant workers and 44 office workers in February, citing a decline in order entry due to economic conditions and a drop in milk prices.

Paul Mueller, which is traded publicly on the Over the Counter bulletin board as MUEL.PK, posted a net income loss of $618,000 in the third quarter, compared to a $656,000 net gain in the same quarter of 2008. Year-to-date net income is down $86,000, compared to a net gain of $2.7 million in the first nine months of last year.

Much of the loss can be traced to a decline in sales; the company totaled $127.2 million in sales through the first nine months of the year, down 17 percent from last year.[[In-content Ad]]