OhioChick (1000+ posts) Fri Jun-10-11 02:41 PM
Heinz Raises Profit Target, Plans to Cut Jobs (800-1,000)
Heinz raised its long-term earnings growth target on Thursday, due in part to a plan that includes closing five factories and cutting up to a thousand jobs.
The ketchup maker also reported lower-than-expected fiscal fourth-quarter profit and issued an upbeat forecast.
Heinz plans to spend $160 million, or 35 cents per share, on initiatives to improve its manufacturing efficiency. The plan includes closing two factories in Europe, two in the United States and one in the Pacific region, leaving it with 76 factories globally. The closures will mean the loss of 800 to 1,000 jobs, it said. It will also set up a European supply chain hub in the Netherlands.
Like most food companies, Heinz has been looking for ways to cut expenses as it faces higher costs for a host of raw materials from packaging to fuel.