(To read more on the industrial market, click here.)

PITTSBURGH-HJ Heinz Co. plans to close 15 of the 91 manufacturing plants it currently operates worldwide. This is part of an ongoing cost-cutting plan by the locally based international food producer that included the earlier closing of operations in Zimbabwe. Another five plant closings may follow in fiscal 2008, said William R. Johnson, chairman, during a fiscal fourth-quarter conference call.

“Exiting these plants will further enhance productivity and drive significant cost savings,” Johnson said. He did not identify the plants to be shuttered, and their locations are not listed in the company’s SEC filings.

A Heinz spokesman tells GlobeSt.com, “the vast majority are outside the US. They vary in size and configuration, depending on what is produced in them.” Announcement of the locations “is premature.” Employees will be notified of the plant sales or divestitures within the next two to three months. Heinz has not yet enlisted anyone to market the properties, according to the spokesman, who says, “it is likely they will be sold.” Heinz has operations on all continents.

The overall cost-cutting plan that also calls for a reduction of 2,700 jobs, which represents 8% of the company’s work force, is designed to save $355 million. Profits for the quarter dropped 19% to $167.9 million, or 50 cents a share, down from $206.5 million, or 56 cents a share, compared with the same quarter a year ago. Quarterly revenue rose to $2.4 billion, up from slightly more than $2.2 billion.

The New York City-based Trian Group, which holds 5.4% of Heinz stock, filed a position paper with the SEC on May 23 detailing recommendations to improve shareholder value at Heinz. The group, led by Nelson Peltz, has nominated five of its principals to the Heinz board. Shareholders will vote for board members at the company’s Aug. 16 annual meeting.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.