Soup giant $63m supply chain restructuring

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The Campbell Soup Company has reported pre-tax restructuring costs of $63 million for the fourth quarter of its financial year as a result of a series of initiatives to improve supply chain efficiency and reduce overhead costs across the company.

In June it announced plans to o improve the efficiency of its supply chain, including investing in a new system to automate packing operations at its biscuit plant in Virginia, Australia. This investment, which includes capital expenditure of some $40m, will occur over an 18-month period.

In the US, Campbell will improve asset utilisation by shifting production of ready-to-serve soups from its plant in Paris, Texas, to its facilities in Napoleon, Ohio and Maxton, NC. It is also closing its office in Moscow and exiting the Russian market.

In total, the company expects to cut the workforce by some 770 producing savings of some $60m in 2012.

Sale for the year to 31st July increased one per cent to $7.7bn while net earnings for the year were $805m compared with $844m last year.


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