Goodman Fielder to Close Factories

Submitted by Share Trading on 4 September, 2012 - 08:57

At an investor day presentation, Australian food manufacturer, Goodman Fielder (ASX:GFF) has announced its plans of company restructuring and the closure of factories in Australia and New Zealand as it seeks to save $100 million over three years.

  • Goodman Fielder is losing money from supplying generic branded breads to Coles and IGA. It's competitor, George Weston supplies generic breads for Woolworths (WOW) and German supermarket chain Aldi.
  • The company's plan is to reduce its factories from 53 plants to 35 by June 2015.
  • In the past financial year the company has already laid off 600 staff and closed bakeries at Rockhampton in Queensland, Bunbury in Western Australia and Rotorua in New Zealand.
  • More recently, the company has announced that it will close Goodman Fielder bakeries in Cairns and Whiteside, in Melbourne.
  • This week the company has also announced a sale of its Integro oils business to GrainCorp for $170 million last week and plans to sell its New Zealand Milling operations.
  • During the financial results reporting season, the company reported a net loss of $146.9 million for the year, where in the previous year it had lost $166.7 million.
  • Goodman Fielder is listed on the NZX and ASX stockmarket.
  • GFF shares closed lower at 51.5 cents per share, losing 0.96 percent or 0.5 cents.

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