ST. LOUIS — Small businesses have been the story lately, as $350 billion in government aid flows to blunt economic fallout from the new coronavirus.
But big public companies, of which St. Louis has plenty, are also making moves to address the widespread "uncertainty," as some have called it.
They, too, are reducing expenses.
Global footwear brands holder Caleres Inc. (NYSE: CAL), based in Clayton, said last week it had "moved quickly to drive down costs in all areas of the business and to manage the variables within its control to ensure that it is positioned for future success."
That included extending credit terms and reducing inventory within its supply chain. It's also deferring or canceling capital projects, halting some marketing activities and "limiting cash outflows" associated with the closure of its stores.
Those policies weren't enough: "Caleres found it necessary to lay off or furlough Associates across its retail stores, distribution centers and corporate operations, and has implemented a meaningful salary reduction across all levels of the remaining global workforce, including the executive leadership team and the company's board of directors," a statement from the firm said. It said it would pay employee and company health care premiums.
Chesterfield-based Aegion Corp. (Nasdaq: AEGN), a rehabber of infrastructure pipelines, cut wages for North American salaried employees by 15% to 50%, and furloughed about 15% of its workforce. Members of senior management are forgoing 50% to 100% of base salaries, though the company plans to award those executives, including CEO Charles Gordon, more stock.
Companies are also borrowing hundreds of millions of dollars, according to financial documents, filed with the Securities and Exchange Commission in March and April.
Downtown St. Louis coal producer Peabody Energy Corp. (NYSE: BTU) said that on Friday it borrowed $300 million on a $565 million credit line "to ensure it maintains ample financial flexibility in light of the current uncertainty in the global markets caused by the COVID-19 outbreak."
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