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General Mills to close two plants in Canada, US

From Food Business Review

General Mills – the maker of Cheerios, Betty Crocker and Yoplait – is planning to shut two of its plants in Canada and the US in Ontario and Indiana, respectively. The closure is in line with the company’s strategy to save around $100m annually by the end of fiscal 2017, reports The Wall Street Journal.

The plans to halt operations at its New Albany facility are subject to negotiation with union officials.

Expected to be completed in mid-calendar year 2016, the closure at Midland facility and New Albany facility could affect 100 and 400 employees, respectively. Both the facilities manufacture refrigerated baked goods.

Earlier in December 2014, General Mills announced that it generated around $4.71bn in net sales for the year ended 23 November 2014.

General Mills chairman and CEO Ken Powell previously said, “Second-quarter results were broadly in line with the updated outlook we provided in early November. Net sales declined for the quarter as anticipated, reflecting continued weak food-industry trends in the U.S. and slowing growth in key emerging markets.

“Adjusted diluted EPS came in slightly better than our estimate, primarily due to differences in expense timing. These quarterly results keep us on track to achieve the full-year fiscal 2015 targets announced last month.”

Read the full article here.