Company Intends to Close Moscow Office
CAMDEN, N.J., Jun 28, 2011 (BUSINESS WIRE) — Campbell Soup Company (NYSE:CPB) today announced a series of initiatives to improve supply chain efficiency and reduce overhead costs across the organization. The company also announced its intent to close its office in Moscow and exit the Russian market.
Campbell expects to eliminate approximately 770 positions in connection with these initiatives and to incur aggregate pre-tax costs of approximately $75 million, nearly all of which will be recorded in the fourth quarter of this fiscal year. The initiatives are expected to be completed in fiscal 2013. They are expected to generate annual pre-tax savings of approximately $60 million beginning in fiscal 2012, increasing to approximately $70 million in fiscal 2014.
The actions planned include the following:
The company will provide additional details on these initiatives in a public filing today.
Denise Morrison, Chief Operating Officer and CEO Elect, said, “The steps we are announcing today will help us continue to lower our costs and helpfund our plans to drive the growth of the business. The supply chain initiatives will enable us to improve manufacturing efficiency and further adjust the utilization of our assets to evolving consumer demand. While a workforce reduction is always a verydifficult decision, these actions will streamline our organization and improve the level of coverage and theeffectiveness of our sales merchandising activities.”
Morrison continued, “As part of the development of our strategic plan, our leadership team, in consultation with the Board of Directors, has been examining all aspects of our business, including our currentemerging market operations. Though Russia remains an attractive potential growth market, the results of the business we launched in that market in September 2007 have fallen short of original expectations. We believe that opportunities currently under exploration in other emerging markets, notably China, offer stronger prospects for driving profitable growth within an acceptable time frame.”
Morrison and other members of Campbell’s management team will outline the company’s growth strategies at a meeting in Camden on July 12, 2011. Campbell invites interested parties to listen live to the investor presentations that will be delivered that day. The presentations are expected to begin at 9:00 a.m. and to end at 12:30 p.m. Log on to the web at the following address several minutes prior to the start of the presentation: investor.campbellsoupcompany.com. A replay of the broadcast, along with accompanying slides, will be available at the above web site approximately two hours after the completion of the event.
About Campbell Soup Company
Campbell Soup Company is a global manufacturer and marketer of high-quality foods and simple meals, including soup and sauces, baked snacks and healthy beverages. Founded in 1869, the company has a portfolio of market-leading brands, including “Campbell’s,” “Pepperidge Farm,” “Arnott’s” and “V8.” Through its corporate social responsibility program, the company strives to make a positive impact in the workplace, in the marketplace and in the communities in which it operates. Campbell is a member of the Standard & Poor’s 500 and the Dow Jones Sustainability Indexes. For more information, visit https://www.campbellsoup.com.
This release contains “forward-looking statements” that reflect the company’s current expectations about its future plans and performance, including statements concerning the impact of cost-saving and productivity initiatives on sales, earnings, cash flows and margins. These forward-looking statements rely on a number of assumptions and estimates that could be inaccurate and which are subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the company. Please refer to the company’s most recent Form 10-K and subsequent filings for a further discussion of these risks and uncertainties. The company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release.
SOURCE: Campbell Soup Company
Campbell Soup CompanyAnthony Sanzio (Media)(856) 968-4390orJennifer Driscoll (Analysts/Investors)(856) 342-6081
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