Printer Friendly

AGWAY PRESIDENT SCHEDULES TELEPHONE BRIEFING TO ANNOUNCE RESULTS OF STUDY

 AGWAY PRESIDENT SCHEDULES TELEPHONE BRIEFING
 TO ANNOUNCE RESULTS OF STUDY
 /EDITOR'S NOTE: Charles F. Saul, president and CEO of Agway, will be available during a telephone briefing session this morning starting at 10 a.m. To join the briefing and have your questions answered, call 203-796-7465 and reference Agway/
 SYRACUSE, N.Y., Sept. 14 /PRNewswire/ -- Agway Inc., the largest farm cooperative in the Northeast, has announced the results of a comprehensive eight-month study into the future of the company. The process called "Customer Driven: 1995...Focusing on the 21st Century" was initiated in early 1992 to evaluate Agway's future business strategies in relation to customer needs.
 "The Customer Driven: 1995 project has been the catalyst to build a strategy for Agway to move positively into the future," said Charles F. Saul, who became president and chief executive officer of Agway earlier this year. "This process, identifying specific business strategies, centered around the market demand of three core businesses: agriculture, consumer, and energy. By implementing these strategies, we will become more responsive to our customer needs, improve service, reduce costs, and increase profitability to ensure a strong cooperative for the 1990's and beyond.
 "We are now implementing a number of the structural changes that have been identified through the Customer Driven process," Saul said. "The cost associated with the restructuring of both our human and physical resources to the markets we intend to serve has been identified and estimated at $75 million."
 This restructuring charge represents the impact of the programs and changes that will be implemented in the current organization over the next three years, according to Saul. The restructuring cost is being reflected as a charge against Agway's fiscal 1992 operating results, which show a consolidated loss of $58.8 million on consolidated sales of $3.3 billion for the fiscal year ended June 30, 1992.
 "Agway management and the board of directors have taken this approach to expedite the transition in the best interests of our members, customers and investors," Saul said. "Agway has absorbed this restructuring charge while maintaining equity in our cooperative of over $190 million at the fiscal year-end. Our plan of action will serve to accelerate the improvement over the prior year that was achieved in some of our businesses during the past year."
 According to Saul, Customer Driven '95 has defined the future of Northeast agriculture and how Agway will serve this market; given a clear picture of Agway's markets and the potential for growth; and demonstrated the need for Agway to streamline its organizational structure and tap new systems and technology.
 "These changes we are making will result in selected work force reductions and some facility closings," Saul said. "In the case of both jobs and facilities, it is premature to discuss specific numbers or locations. We expect the process to evolve over a number of months and beyond as we build a stronger Agway," Saul said.
 "This has been a hard and healthy look at Agway's business. As the largest, most comprehensive study ever made of our cooperative, it has involved hundreds of our employees, members, customers, and suppliers. We have had to make a number of tough calls as the result of these findings, but it will allow us to build on our strengths and focus on our core businesses," Saul said.
 Details of the Customer Driven '95 project have been and will continue to be presented to Agway staff and members, leading into the cooperative's annual meeting scheduled for October 29-30 in Syracuse, N.Y.
 "This is a planned, long range approach to doing business. We made the decision to implement this process to sharpen our competitiveness and prepare for the challenges presented by a rapidly changing business climate," Saul said.
 -0- 9/14/92
 /CONTACT: Richard K. Arnold of Agway Inc., 315-449-6201/ CO: Agway Inc. ST: New York IN: SU:


BM -- CL003 -- 8832 09/14/92 07:01 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 14, 1992
Words:651
Previous Article:NATIONAL RECYCLING COALITION ANNOUNCES NATIONAL CAMPAIGN
Next Article:THRIFTY KICKS OFF SWEEPSTAKES IN FEVERISH STYLE MONDAY
Topics:


Related Articles
AGWAY REPORTS 1993-94 RESULTS
AGWAY INC.: SAUL ANNOUNCES RETIREMENT; BOARD NAMES CARDARELLI EVP/COO
Agway Announces 1996 Year-End Financial Results
Agway Announces Fiscal 1997 Financial Results
Agway Profits Increase in Fiscal 1998
Agway Announces Unification of Its Agriculture and Retail Businesses.
Agway Announces 2000 Results.
Agway's Energy Business Reports FY 2002 Profit of $10.5 Million; Strong Profits and Growth Despite Warm Winter.
Bankruptcy Court Grants Initial Agway Requests.
Bankruptcy Court Grants Interim Approval For Agway's Use of Its DIP Credit Facility.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters