This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
This Website Uses Cookies
By closing this message or continuing to use our site, you agree to our cookie policy. Learn More
This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
Prepared Foods logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Prepared Foods logo
  • Home
  • Trends
    • 2020 Trends
    • 2019 Trends
    • 2018 Trends
  • Products
    • Bakery
    • Beverages
    • Breakfast, Cereals & Bars
    • Cannabis
    • Dairy
    • Meals & Sides
    • Meat, Poultry & Seafood
    • Sauces & Marinades
    • Snacks & Appetizers
    • Soups
    • Food & Beverage Product Videos
  • Ingredients
    • Phosphates & Acidulants
    • Antioxidants & Nutritionals
    • Batters, Breading & Coatings
    • Cheese, Sauces & Bases
    • Colorings
    • Dietary Fiber
    • Emulsifiers, Fat & Oils
    • Flavors, Seasonings, Spices
    • Flours, Grains, & Pasta
    • Fruits, Vegetables and Nuts
    • Gums & Starches
    • Proteins & Enzymes
    • Sweeteners
  • Formulation
    • Allergens & Intolerance
    • Gluten Free
    • Authentic & Ethnic
    • Calorie Reduction
    • Cost Reduction
    • Fat Reduction
    • Organic & Natural
    • Shelf Stability
    • Sugar & Sodium Reduction
    • Weight Management
    • Vegetarian
    • R&D Lab Tech / QA-QC / Food Safety
  • Better for You
    • Functional New Products
    • Functional Ingredients
    • Functional Benefits
  • Food Master
  • Multimedia
    • Favorite Products Poll
    • Videos
    • Image Galleries
    • Interactive Spotlight
    • Polls
  • More
    • eNewsletter Archives
    • Events
      • New Product Conference
      • Spirit of Innovation Awards
      • Industry Events
      • Webinars
    • Prepared Foods Store
    • White Papers
    • First Person Q&A
    • 19 Product Development Resources
  • Magazine
    • Current Issue
    • Archives
    • Digital Editions
  • Contact
    • Contact Us
    • Advertise
Home » On the Street - Smithfield Restructuring Pork Group
Breaking News

On the Street - Smithfield Restructuring Pork Group

March 2, 2009
Reprints
No Comments

On the Street - Smithfield Restructuring Pork Group

February 25/Food & Farm Week --  Smithfield Foods Inc. announced a plan to consolidate and streamline the corporate structure and manufacturing operations of its pork group to improve operating efficiencies and increase utilization. The company expects the restructuring plan will result in annual cost savings after applicable restructuring expenses of approximately $55 million in fiscal 2010 and $125 million by fiscal 2011.

Smithfield Foods said that the pork group's new business model will enhance the strength of its independent operating company approach, while rationalizing manufacturing operations and taking advantage of synergies in key overhead areas such as sales, marketing, purchasing and information technology.

"This plan will create true synergies between our independent operating companies and produce more opportunities to improve the bottom line in the future," said C. Larry Pope, president and chief executive officer. "Combined with the several plant closures we have made over the last three years, this restructuring should improve operating rates dramatically, allowing us to shed low-margin business," he said.

In connection with the plan, the company anticipates recording a pre-tax charge, principally related to non-cash asset write-downs, of approximately $85 million in its third fiscal quarter ended February 1. In addition, Smithfield Foods expects to record one-time pre-tax charges of approximately $30 million as the plan is implemented over the next three quarters. The company estimates that $53 million in capital expenditures will be required relative to plant consolidations in the remainder of fiscal 2009 and in fiscal 2010. Total capital expenditures are expected to remain below depreciation in this fiscal year and next.

From the February 16, 2009, Prepared Foods E-dition

Subscribe to Prepared Foods

Related Articles

On the Street: Smithfield Facilities Honored with Environment Awards

On the Street -- The Pinnacle at Pinnacle

On the Street -- Flax Council of Canada's Findings on Flax Oil Capsules

On the Street - Almond Board of California Reports on Food Industry Attitudes

You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • Print & Digital Edition Subscriptions
  • Prepared Foods eNewsletter
  • Online Registration
  • Subscription Customer Service

More Videos

Popular Stories

Innova_StreetCouple_900

Innova Market Insights Top Trends for 2020

SFA_900

2020 Food Trend Predictions

SteepFuze Coffee Flavors

A look at cannabis-infused coffee and tea products

PackagedFacts900

Amazon to Overtake Walmart as Largest US Retailer by 2022

Cannabinoids Molecules Graphic

Beyond CBD and THC: Other cannabinoids offer possibilities for cannabis edibles

Prepared Foods Favorite Products Poll

Events

January 1, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Poll

PROFESSIONAL DEVELOPMENT

How many conferences do you or your team travel to each year?
View Results Poll Archive

Products

Accelerating New Food Product Design and Development, 2nd Edition

Accelerating New Food Product Design and Development, 2nd Edition

See More Products

Prepared Foods

Prepared Foods November 2019 Cover

2019 November

Check out the November 2019 issue of Prepared Foods, featuring our cover story on the value fruits and nuts add to formulations, better for you beverages, and much more!

View More Create Account
  • More
    • Want More
    • Connect
    • Editorial Guidelines
    • New Product Submission Form
    • Food & Beverage Brands
    • Custom Content & Marketing Services
    • Market Research
    • List Rental
    • Survey And Sample
    • Privacy Policy
  • Advertise With Us
    • Advertise
  • Subscribe

Copyright ©2019. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing