Campbell Soup to cut jobs, save money

Condensed chicken soup Campbell is stored on a shelf at a grocery store in Phoenix, Arizona, February 22, 2010.

Credit: Reuters/Joshua LottBy Martinne Geller

NEW YORK | Tue, June 28, 2011 6 pm EDT

NEW YORK (Reuters) - Campbell Soup Co (CPB.)(N) will be paid nearly 800 jobs in a series of cost reductions, which include out them of the Russian market, automation of the operations in a factory in Australia and close to the United States.

The company increased by 0.8 per cent in trade after hours following the announcement Tuesday.

Large manufacturer of soup in the world has approximately 18,400 employees worldwide, including approximately 1,200 at its headquarters in Camden, New Jersey.

Campbell expects kicking cost it about $ 75 million is mainly recorded in the fourth quarter of the current fiscal year. Expected to complete these movements in fiscal 2013.

Campbell said that the changes should save 60 million per year from 2012 tax, with the lifting of tax savings to 70 million in 2014.

The announcement comes less than a week after Campbell officially named Denise Morrison as its new President and CEO, replacing Douglas Conant, who will leave on 31 July, after more than a decade at the bar.

Morrison said in a statement that, as the new management team developed its strategic plan, he reviewed all aspects of its activities. He concluded that the business of the Russia, started in 2007, did not meet expectations.

"We believe under exploration opportunities in other emerging markets, especially China, offer strong prospects for profitable growth more within acceptable conduct," said Morrison.

Campbell announced his intention to enter the markets of the world more large consumers of soup, Russia and China, both in 2007. The company has found enough success in China to expand the distribution, but he had difficulty in Russia, where consumers have suspicious first on pre-established soups.

Two executives who have been the key at the time were also recently left the company. Larry McWilliams, former President of Campbell International, was replaced by Mark Alexander in October. Chris Delaney, former President of emerging markets, leaving Campbell moved in April by the President of the Asia-Pacific to a business development role. He was replaced earlier this month.

REDUCING COSTS, INCREASING EFFICIENCY

Regarding the blows together, Morrison said they lower the cost of the business, improve the efficiency of manufacturing and assist in the financing of growth plans.

Campbell will close its Office in Moscow and leave the Russian market, resulting in the loss of 50 jobs.

Campbell also said that he expected to have $ 40 million for capital investment over a period of 18 months to automate the packaging to the Virginia plant, Australia operations. Approximately 190 jobs will be lost, he said.

Closer to home, Campbell, which manufactures also the V-8 fruit drinks and crackers Goldfish to Pepperidge Farm, said it closed a plant in Marshall, Michigan, and move the production of ready-soups to serve as a plant in Paris, Texas, at facilities of Napoleon, Ohio, and Maxton, North Carolina.

It will also outsource most of its activities to its retail sales current agent Acosta sales and Marketing, which will result in the loss of 190 U.S. retail merchandising positions.

Campbell share rose to $34.02 trade after hours of their close to $33.74 on the New York Stock Exchange.

(Reporting by Martinne Geller). (Editing by Robert MacMillan, Gary Hill and Gunna Dickson)