NEW YORK — International Flavors & Fragrances Inc. reported Thursday that it recently eliminated more than 150 positions in North America and Europe as part of its ongoing reorganization.
This story first appeared in the April 4, 2003 issue of WWD. Subscribe Today.
Accordingly, IFF anticipates a first-quarter aftertax charge of about $13 million, or 14 cents a share, to cover separation costs. Earnings for the period, including the charge, should range from 33 to 36 cents a share. IFF tallied income of 44 cents a share a year ago.
Excluding divested businesses, quarterly sales are expected to be in line with previous guidance, rising by 5 to 6 percent. Year-ago revenues reached $445.8 million, $5.1 million of which came from disposed businesses.
The firm will discuss results for the quarter with Wall Street on a conference call scheduled for April 28.
IFF set out on its reorganization plan after its acquisition of competitor Bush, Boake Allen Inc. in 2000, and has since undergone management changes and significant consolidation of production facilities.
A spokeswoman said IFF after the acquisition had about 7,000 employees, a number that had shrunk to 5,700 as of Dec. 31.
The recent contraction will help IFF reap annual cost savings of between $25 million and $30 million. A portion of these savings will be reinvested into the business. The firm’s changes have been more expensive than initially expected, though. IFF is now looking for total costs for the makeover, expected to take between three and five years, to come in at around $110 million, while the initial goal was put at between $90 million and $100 million.