Source:
MarketWatch7:49 a.m. EST Nov. 18, 2008
NEW YORK (MarketWatch) -- The Pepsi Bottling Group Inc. said Tuesday that it will begin a multi-year restructuring that is expected to cost 3,150 jobs, mostly in Mexico, and save the firm up to $160 million a year before taxes.
In the fourth quarter, the restructuring at Pepsi Bottling Group (PBG:pepsi bottling group inc com
PBG 19.23, -0.68, -3.4%) will result in a charge of 27 cents to 32 cents a share.
About 750 jobs in the U.S. and Canada will be affected along with 200 jobs in Europe.
In Mexico, about 2,200 jobs will be affected as routes are cut and plants are closed.
Pepsi Bottling set plans to take a pre-tax impairment charge of $412 million, or $1.25 per diluted share after-tax, related to its business in Mexico.
The restructuring initiative and the impairment charge will result in cumulative pre-tax charges of $492 to $512 million in the fourth quarter of 2008, or $1.52 to $1.57 a share after-tax.
PBG now sees 2008 earnings per share of $2.20 to $2.26, down from its previous expectations of $2.32 to $2.38.
Shares of Pepsi Bottling Group fell 93 cents to $19.91 on Monday.
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http://www.marketwatch.com/news/story/Pepsi-Bottling-Group-cutting-3150/story.aspx?guid=%7B155EE849-6F1E-4BFA-A017-28110D870439%7D
The bleeding continues....