Tags: Energizer | Costs | Cut | Jobs

Energizer to Reduce Costs, Cut Jobs

Tuesday, 18 Sep 2012 10:12 AM

Energizer Holdings Inc., the maker of Energizer batteries and Schick razors, outlined plans on Tuesday to cut jobs and reduce overhead expenses as part of a plan to improve profits.

The company's shares rose 10 percent to $74.68 on the New York Stock Exchange on Tuesday.

The initiatives, which also include streamlining its international organization and restructuring the household products division, are expected to save between $175 million and $200 million in gross annualized pre-tax costs.

The company expects 70-80 percent of the savings will boost profitability, and plans to re-invest the remaining portion to drive long-term growth.

Energizer expects one-time charges related to the initiatives of less than 1.25 times the savings.

The company did not say how many jobs it would cut.

Energizer said in August it would review its operations after reporting lower-than-expected third-quarter results as it lost shelf space for batteries at Walmart stores.

The company is facing increasing competition in the razor and blade category from market leader Procter & Gamble Co.'s Gillette, which is issuing more coupons and offering promotions, primarily in the United States.

Energizer said it will start seeing a benefit from Tuesday's initiatives by the second half of fiscal 2013.

© 2017 Thomson/Reuters. All rights reserved.

 
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Energizer Holdings Inc., the maker of Energizer batteries and Schick razors, outlined plans on Tuesday to cut jobs and reduce overhead expenses as part of a plan to improve profits.
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2012-12-18
Tuesday, 18 Sep 2012 10:12 AM
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