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Energizer to cut costs through restructuring.

ST. LOUIS -- An enterprise-wide restructuring plan has been authorized by Energizer Holdings Inc.'s board of directors in an effort by the company to achieve gross annualized pretax cost savings of about $200 million.

Energizer expects that nearly three-quarters of the savings will improve profitability and that the remaining portion of the savings will be invested in the business to dave long-term growth. Onetime charges associated with achieving these benefits are anticipated to be approximately 1.25 times gross annualized savings, of which around 25% to 30% are estimated to be noncash charges.

The company expects that a substantial portion of the actions necessary to achieve the targeted savings should be completed by the end of fiscal 2014 and that the total savings are expected to be fully realized in fiscal 2015. Most of the onetime charges associated with these initiatives are expected to be recorded within the next 12 to 18 months, because restructuring costs are expected to be incurred ahead of achieving the estimated savings.

"These actions represent significant and necessary changes," said chief executive officer Ward Klein.

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Title Annotation:Supplier News
Publication:Chain Drug Review
Date:Nov 19, 2012
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