Milling & Baking News - May 29, 2012 - 14

Business 

General Mills cutting workforce by 850, sees $109 million charge
MINNEAPOLIS — General Mills, Inc. announced a restructuring plan that will result in a workforce reduction of 850 globally and cost approximately $109 million in restructuring charges. The company said approximately $94 million of the restructuring costs will be recorded in the fourth quarter of fiscal 2012, which ended on May 27. The remaining costs will be recorded in fiscal 2013. General Mills did not specify which business units of the company may be most affected by the restructuring effort. The company noted the initiative is a “productivity and cost savings plan designed to improve organizational effectiveness and focus on key growth strategies.” Asked to elaborate, a company spokesperson said further details would be provided next month when the company issues fiscal 2012 results and guidance for the new year. “It includes organizational changes to strengthen business alignment and accelerate administrative efficiencies across the company,” the spokesperson said. “Savings will be reinvested to support the company’s future growth strategies and to accelerate innovation

across our global business platforms.” In its 2011 annual report, General Mills said it had 35,000 employees worldwide. General Mills said it continues to target fiscal 2012 adjusted diluted earnings per share of $2.53 to $2.55 per share. During the third quarter of fiscal 2012, which ended Feb. 26, General Mills earned $391.5 million, equal to 61c per share on the common stock, which compared with $392.1 million, or 61c per share, in the previous year’s third quarter. Net sales for the quarter were $4,120 million, which compared with $3,646.2 million in the previous year’s third quarter. MBN such as the pasta and pulse plant, “will continue so that they are ready for implementation when we feel it is the right time to do so.” Alliance Grain has said the site will process durum wheat into semolina for the production of the Arbella pasta brand in Canada, as well as be used for pulse processing capacity for production of ingredient pulse flours, proteins, starches and fibers. The distribution center is expected to capitalize on the availability of ocean containers, trucks and intermodal units at the GTH site for domestic and export shipments. MBN

Alliance Grain delays plans for pasta plant construction
REGINA, SASK. — Alliance Grain Traders Inc. has pushed back the groundbreaking date on its $50 million pasta and pulse processing complex in Regina to 2013. The project, which was announced in October 2011, originally was slated to begin this year. “The pasta project announced in 2011 will be deferred, and is now planned to begin in 2013 in order to allow us to monitor developments in the North American grain industry,” Murad Al-Katib, president and chief executive officer, said as part of first-quarter financials released May 10. “Pending developments, such as the demonopolization of the Canadian Wheat Board and the proposed sale of Viterra to Glencore, as well as the free trade negotiations between Canada and the E.U., will continue to reshape the landscape of the industry. “Accordingly, management believes it is prudent to focus on our balance sheet at this time and improve our business metrics.” He added planning and design work for the company’s larger projects,

Bimbo Texas plant to be built in Rockwall
ROCKWALL, TEXAS — The new baking plant being built by Bimbo Bakeries USA in Texas will be located in Rockwall, according to the Rockwall Economic Development Corp. (R.E.D.C.). The 300,000-square-foot facility is the largest new industrial build-to-suit project in the history of Rockwall, and it will be the first facility to occupy 40 acres in Phase II of the Rockwall Technology Park. According to the R.E.D.C., the bakery will employ 130 and initially will operate two large bread and bun lines, but it will
14 / May 29, 2012 Milling & Baking News

ConAgra Foods buys pita chip business
OMAHA — ConAgra Foods, Inc. has acquired the Kangaroo Brands’ pita chip business. Based in Milwaukee, Kangaroo Brands is a leader in private label pita chips and generates about $20 million in annual revenue. The acquisition includes a manufacturing facility in Milwaukee and about 50 employees. Kangaroo Brands will continue to own and market its pita bread and frozen sandwiches. Financial terms of the transaction were not disclosed. “Pita chips are a high-growth category and a natural fit with ConAgra Foods’ private label snacks business,” said Gary Rodkin, chief executive officer of Omaha-based ConAgra Foods. “We are pleased to add another business that further positions us for accelerated growth.” MBN
bakingbusiness.com / world-grain.com

have the capability to support additional lines and products. Daniel Servitje, chief executive officer of Grupo Bimbo S.A.B. de C.V., first mentioned the new plant in an April 27 conference call with investment analysts. In March, Bimbo said it was closing three baking plants by the end of May — facilities in Dothan and Mobile, Ala., and Knoxville, Tenn. Two months earlier, the company announced plans to close a plant at Rock Island, Ill. B.B.U. operates 75 baking plants in the United States, including several in the Dallas-Fort Worth area. MBN

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Milling & Baking News - May 29, 2012

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