Solo Cup Company plans restructuring program
The program is designed to align the Company's resources with its global vision and long-term growth strategy.
17/04/06 As a major step in completing the integration of its 2004 acquisition of SF Holdings, Inc., Solo Cup Company (the "Company") announced that it is implementing a restructuring program designed to align the Company's resources with its global vision and long-term growth strategy. The Company has eliminated approximately 400 positions, effective immediately, representing approximately 3% of its total workforce. This represents a reduction of approximately 3% in salaried positions and approximately 2% in hourly positions. These measures are expected to improve future cash flow, position the Company more competitively and enhance its long-term profitability.
As a result of these actions, the Company estimates it will record approximately $4 million of severance costs, including approximately $1 million recorded in the 1st fiscal quarter of 2006 and the remainder recorded in the 2nd fiscal quarter of 2006. The Company expects to complete these activities by the end of the fiscal year. Excluding severance costs, the Company expects the restructuring program to result in annualized pre-tax savings of approximately $12 million.
Solo Cup Company is a $2.4 billion company exclusively focused on the manufacture of disposable foodservice products for the consumer/retail, foodservice, packaging, and international markets. Solo Cup has broad expertise in paper, plastic, and foam disposables and creates brand name products under the Solo, Sweetheart, Fonda, and Hoffmaster names. The Company was established in 1936 and has a global presence with facilities in Asia, Canada, Europe, Mexico, Panama and the United States.
