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NATION / WORLD: CONSUMER PRODUCTS

General Mills to Restructure, Cut 200 Jobs

November 25, 1998|Reuters

General Mills Inc., the nation's No. 2 cereal maker, said it would streamline its operations, cut about 200 jobs and take a $32-million charge to pay for the latest round of its restructuring. The maker of Cheerios, Wheaties and other products said the charge would equal about 21 cents a diluted share but would result in annual cost savings equal to 11 cents a share starting in fiscal 2000. Analysts said the cost cuts should help Minneapolis-based General Mills meet its goal of 12% earnings-per-share growth in 2000, a target some considered too high given the fierce price competition in the U.S. cereal industry. General Mills said the restructuring would streamline its supply chain as part of a broad consolidation announced in May. The actions planned include consolidating manufacturing and warehouse, distribution and sales activities in the company's packaged food, food service and milling operations, General Mills said. The company's stock rose 25 cents to close at $74.44 on the New York Stock Exchange.

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