Newell Sees $90-$100 m Charge for Europe Revamp
Newell Rubbermaid Inc announced that it would overhaul its European business, auguring the related refurbishing costs to lie around $90 million to $100 million, mostly by the end of 2011.
The plan focuses to cut costs and trigger profitability, including plans to centralize decision-making for business functions in Switzerland.
Chief Executive Mark Ketchum posted, "The intended actions we are announcing today to simplify our business structure, speed up decision making and shorten time to market are designed to ensure that our company is well-positioned and appropriately structured for sustainable, long-term growth in Europe".
The maker of Rubbermaid storage containers and Sharpie pens is reported to foresee an improvement in annual profits of $50 million touching $60 million, net of tax, once the revamping process is concluded in 2012.
In addition, it also extended a reaffirmation on its full-year 2010 earnings forecast of $1.38 to $1.48 a share.
However, Newell Rubbermaid highlighted only a few details regarding the plan, but, a spokesman uncovered that many workers affected would be facilitated with relocation packages to Switzerland.
The Company shares marked a closing price of $16.89 Wednesday on the New York Stock Exchange.
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