Wednesday, 24 March 2010 - 16:04
J.M. Smucker To Cut 15% Of Work Force Over Next 3 Years
DOW JONES NEWSWIRES
J.M. Smucker Co. (SJM) said it will cut 15% of its work force over the next three years, closing four plants and building a new one, measures it expects will save $60 million annually once fully in place.
The maker of fruit spreads, Folgers coffee and other foods also will close 2 fruit-spreads plants in 2013 and consolidate all coffee production into the company's facilities in New Orleans, shuttering two other facilities the next two years. The closures will result in job losses for about 700 full-time workers, Smucker said.
Meanwhile, the company plans to spend $220 million the next three years in its coffee and namesake businesses, building a new plant and expenditures for new equipment and technology. Construction on the Ohio facility is expected to begin this fall, with initial production startup in the summer of 2012.
Smucker plans to take about $190 million in restructuring charges over the course of the plan.
The company last month said its fiscal third-quarter earnings jumped 74% amid fewer one-time charges as revenue increased and margins surged.
Shares were up 7 cents to $61.08 in recent trading. The stock has risen by two-thirds the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; firstname.lastname@example.org;
(END) Dow Jones Newswires
March 24, 2010 10:04 ET (14:04 GMT)
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