Eldec Shakes Up Management -- Firm To Lay Off About 200 Workers

Less than two months after it was bought by a Connecticut manufacturing company, Eldec Corp. of Lynnwood shook up its top management and said it will lay off 200 or more employees, roughly 20 percent of its work force, over the next four to six weeks.

With the ink barely dry on its $74 million agreement to sell the company to Crane Co. of Stamford, Conn., Eldec replaced its president and chief executive, Tom Brown.

Arlan VanKoevering was named to replace him. VanKoevering was vice president of Eldec's aircraft systems division.

In a brief statement, VanKoevering said Eldec plans a new "streamlined structure" that will help customer service and "grow the business profitably."

A spokesman for Crane refused further comment.

Eldec, which was founded in 1957, makes electrical switches and power-supply parts for the aerospace and defense industries.

The company has suffered as those industries have declined. It

reported a 40 percent decline in profits for its third quarter, ended Dec. 26.

Since reaching a peak of 1,750 employees about two years ago, its work force has dropped about 35 percent, to 1,100. Much of that reduction came through layoffs.

Eldec stands to benefit from supplying parts for the Boeing 777 airliner.

Analysts said the management shakeup and layoffs were expected.

"When Crane got interested, they said they would take (Eldec's) great products and great engineering and supply the profit motive. They've certainly taken the actions that should do that," said Sidney Heller, an analyst with Lehman Bros.

Bill Whitlow, an analyst with Pacific Crest Securities, said Eldec's profitability should "improve measurably" next year, when the 777 starts to roll off the assembly line. Eldec expects to place $335,000 worth of parts on each new 777.