Printer Friendly

CAMPBELL SOUP TO STRENGTHEN BUSINESS PERFORMANCE WITH RESTRUCTURING

 CAMDEN, N.J., Feb. 12 /PRNewswire/ -- Campbell Soup Company (NYSE: CPB) today announced it will sell a number of non-strategic businesses and close several facilities to strengthen the Company's business portfolio.
 These actions follow a renewed emphasis on building Campbell core strengths and further driving cost-competitiveness.
 These actions will result in after-tax charges of $300 million, or $1.19 per share, against fiscal 1993 second quarter net earnings. The charge will provide for:
 -- The sale of several non-strategic businesses over the next several years;
 -- The consolidation of frozen food operations in North America, including closing a plant in Salisbury, Md., employing 804 people and a plant in Philadelphia, employing 504 people.
 The Salisbury and Philadelphia plants will close by August. Affected employees will be offered employment assistance packages which will be negotiated with their union representatives where appropriate. Operations that took place in those plants will be transferred to other Campbell facilities in Omaha, Neb.; Modesto, Calif.; and Fayetteville, Ark., and will dramatically increase future capacity utilization within the company's frozen foods manufacturing system.
 Regarding the unnamed businesses which will be sold, David W. Johnson, Campbell president and chief executive officer said: "We are not closing these businesses. A number serve niche product segments which no longer fit into our long-term plans. However, we want them to operate unimpeded as going businesses until they are sold. That's good business sense."
 Johnson continued: "While we are operating from a position of strong earnings, we continue to face a tough economic and competitive environment worldwide. These actions allow us to invest in those businesses with the best potential. Only last week we successfully concluded our bid to acquire a majority ownership in Arnott's biscuits in Australia. With a 58 percent ownership of Arnott's, we are poised for expansion of our biscuit core competency in Asia. Also within the last eight months, we have introduced the Campbell soup brand into China, Argentina and Poland. As we focus primarily on soup and biscuits -- products in which we bring superior skills and have the highest growth potential -- we will phase out of those businesses which sap management time and are not strategic."
 /delval/
 -0- 2/12/93
 /CONTACT: Kevin G. Lowery, 609-342-8533, or Leonard F. Griehs, 609-342-6428, both of Campbell Soup/
 (CPB)


CO: Campbell Soup Company ST: New Jersey IN: FOD SU: RCN

MK -- PH004 -- 6067 02/12/93 10:00 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 12, 1993
Words:397
Previous Article:VISHAY REPORTS A 46 PERCENT INCREASE IN NET EARNINGS FOR THE YEAR ENDED DEC. 31, 1992
Next Article:MRS. PAUL'S KITCHENS PLANT TO CLOSE
Topics:


Related Articles
Campbell to close four U.S. factories in efficiency, competitiveness move.
CAMPBELL SOUP REPORTS NEW RECORDS FOR FOURTH QUARTER AND FISCAL YEAR
CAMPBELL SOUP REPORTS NEW RECORDS FOR FOURTH QUARTER AND FISCAL YEAR
MRS. PAUL'S KITCHENS PLANT TO CLOSE
CAMPBELL TO CLOSE SALISBURY, MD., PLANT
CAMPBELL SOUP ANNOUNCES NEW EXECUTIVE TEAM TO 'SEIZE THE FUTURE'
CAMPBELL REPORTS RECORD SECOND QUARTER RESULTS
CAMPBELL LEVERAGES PEOPLE POWER AND BRAND POWER AROUND THE GLOBE WITH NEW EXECUTIVE ASSIGNMENTS
Third Quarter Results: Campbell Reports 17 Percent Earnings Per Share Increase Led By Strong Gains In Worldwide Wet Soup Sales
Continuing its Restructuring Effort, Campbell Launches Line of Soup; Makes Another Divestment

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