LONDON, UK / ACCESSWIRE / February 20, 2018 / Active-Investors.com has just released a free research report on Treehouse Foods, Inc. (NYSE: THS). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=THS as the Company's latest news hit the wire. On February 15, 2018, the Company announced that it plans to close its facility in Visalia, California, by the end of Q1 2019. The plant primarily produces pretzels and cereal snack mixes for the Company's Baked Goods segment. Current pretzel production will be moved to other TreeHouse manufacturing facilities prior to closing. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Treehouse Foods most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Total Costs to Close the Facility
The costs to close the Visalia facility are expected to be approximately $21 million, of which approximately $8 million is expected to be in cash. Components of the charges include non-cash asset write-offs of approximately $13 million, employee-related costs of approximately $3 million, and other closure costs of approximately $5 million. Treehouse expects charges of approximately $0.28 per fully diluted share to be incurred in 2018. The closure will affect around 294 employees. The decision is being announced well in advance to provide employees with as much notice as possible and to ensure a seamless transition for customers.
Treehouse reported financial results on February 15, 2018, for the fourth quarter ended December 31, 2017. The Company incurred a net loss from continuing operations of $309.0 million in Q4 FY17 compared to the net profit of $281.8 million in Q4 FY16. The Company's operational results were disappointing.
Fourth Closure in Seven Months
- On January 31, 2018, the Company announced its intention to close its remaining operations in Battle Creek, Michigan. In November 2016, Treehouse announced its initial decision to downsize the Battle Creek facility. The Battle Creek facility produced ready-to-eat cereal, primarily for the North American Retail Grocery segment, and the production would be moved to other Treehouse cereal manufacturing facilities. The closure of remaining operations would affect around 84 employees by Q4 2018.
- On August 03, 2017, TreeHouse declared its plan to close facilities in Brooklyn Park, Minnesota, Plymouth, Indiana, and transition non-peanut packaging operations out of Dothan, Alabama. The Brooklyn Park facility employed 90 employees and produced boxed dinners and packaged side dishes. The Plymouth facility employed approximately 150 employees and produced banana peppers, jalapeños, pickles and pickle relish. In Dothan, around 135 employees would be affected by the production transition.
Decision is Consistent with the Company's Restructuring Program
The decision is consistent with the August 2017 announcement of Treehouse 2020, the Company's restructuring program. Treehouse 2020 is a comprehensive strategic blueprint that consists of aggressive actions to manage the Company's category and customer portfolio and optimize its manufacturing and supply chain. It is a multi-year plan designed to improve Treehouse's operating margin structure by approximately 300 basis points by the end of 2020 by fully integrating its business and reducing its cost structure in order to invest in market-differentiated capabilities that will serve the rapidly evolving needs of its customers that are strategically focused and highly committed to their corporate brands.
About Treehouse Foods, Inc.
Founded in 2005, Treehouse Foods is a manufacturer of packaged foods and beverages with a network of manufacturing facilities across the United States, Canada, and Italy that focuses primarily on private label products for both retail grocery and food away from home customers. The Company manufactures shelf stable, refrigerated, frozen and fresh products, including beverages, meals, baked goods, condiments, and snacks.
Stock Performance Snapshot
February 16, 2018 - At Friday's closing bell, Treehouse Foods' stock rose 2.13%, ending the trading session at $38.28.
Volume traded for the day: 3.72 million shares, which was above the 3-month average volume of 922.12 thousand shares.
After last Friday's close, Treehouse Foods' market cap was at $2.19 billion.
The stock is part of the Consumer Goods sector, categorized under the Processed & Packaged Goods industry.
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