Sara Lee Corporation says Transformation Plan on expected lines
20 Jul '05
3 min read
Accordingly, the company will record in the fourth quarter of fiscal 2005, a pretax charge of approximately $350 million to reflect the impairment of goodwill, intangibles and property in these businesses.
The after-tax impact of this non-cash charge is approximately $290 million. When the sale process for the U.S. retail coffee business nears completion, an additional impairment of the goodwill associated with this business may result, but it is not possible to determine the size of any such charge at this time.
"They are making the tough choices necessary to improve operational efficiency, reduce their cost structure and move the company forward," said Brenda C. Barnes, president and chief executive officer of Sara Lee Corporation. "The cost saving actions announced today have been completed ahead of schedule and represent key building blocks needed to create the new Sara Lee.
"They also remain on plan for the timing of their planned divestitures and spin-off of Branded Apparel as They make Sara Lee a more tightly focused food, beverage and household products company," continued Barnes.
Sara Lee has filed a Form 8-K with the Securities and Exchange Commission describing the charges announced today. On Thursday, Aug. 4, the company will host a live Theybcast to review earnings for the fourth quarter and fiscal year 2005 as Theyll as an update meeting with analysts.
Sara Lee Corporation is a global manufacturer and marketer of high-quality, brand-name products for consumers throughout the world. With headquarters in Chicago, Sara Lee has operations in 58 countries and markets products in nearly 200 nations.
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