IFF JOB CUTS: International Flavors & Fragrances said this week it would eliminate 300 jobs, or about 6 percent of its workforce, from its manufacturing, selling, research and administrative areas in Europe and North America. As a result, the company expects to incur pretax restructuring charges of $25 million to $30 million, most of which will be realized in the fourth quarter of 2005; the remainder is expected to be recognized in the first half of 2006. “We are continually striving to ensure IFF’s creative facilities and global operating network are as efficient as possible,” Richard A. Goldstein, IFF’s chairman and chief executive officer, said in a statement. “These actions are a necessary part of our ongoing efforts to maintain and improve IFF’s profitability in the economic environment in which we operate.”
GIVAUDAN CLOSINGS: Swiss flavors and fragrances firm Givaudan announced Tuesday it will close two of its U.S. production sites — in New Milford, Conn., and in Oconomowoc, Wis. In a statement, the firm said its activities at those two sites will be transferred to Cincinnati and Devon, Ky. The closings, set to be completed by mid-2007, will cost Givaudan 22 million Swiss francs, or $17.1 million at current exchange. Givaudan is also phasing out business in commodity-type savory-base notes, which generated 45 million Swiss francs, or $36.8 million at average exchange, for the firm in 2005. Givaudan said the changes were part of the consolidation of its flavors division and moves to streamline its savory products portfolio.
BEIERSDORF NET UP: The Beiersdorf Group boosted profits after taxes by 9.3 percent to 330 million euros ($418.7 million at average exchange), or 7 percent of sales, in 2005. Earnings before interest and taxes were up 8.7 percent to 525 million euros, or $666.1 million, and group sales rose 5.1 percent to 4.78 billion euros, or $6.06 billion, according to preliminary figures released this week. Beiersdorf noted earnings figures do not reflect the sale of the group’s joint venture, BSN Medical. The sale is expected to be completed in the first quarter of 2006. Sales of the firm’s consumer division, which includes body and facial care under the Nivea, Labello, Florena, Juvena, La Prairie, Eucerin and other brands, grew by 5.2 percent to 4.04 billion euros, or $5.13 billion. Adjusted for currency effects, consumer sales rose 4 percent. EBIT for the division rose 7.4 percent to 465 million euros, or $561.2 million.
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SMOOTH OPERATOR: Smooth New York, a skin care and laser center, opened this week at the offices of Manhattan plastic surgeon Steven Wallach, at 1049 Fifth Avenue. Wallach will oversee all procedures, from Botox injections to Broadband Light photo-rejuvenation therapy, in addition to his specialized practice in body contouring and facelifts. With this affiliation with Smooth New York, which will provide staff nurses, Wallach can perform treatments such as microlaser peels in his office. Smooth New York will sell the skin care line Obagi, available only through medical professionals, said Abby Wallach, Wallach’s wife and business manager.
PUIG MOVE: Puig Fragrances & Personal Care USA Inc., a subsidiary of Puig Beauty & Fashion Group, has named Greg Black director of marketing. Black, who joined Puig’s U.S. subsidiary two years ago as senior marketing manager, will report to Vince Colonna, executive vice president and general manager for Puig F&PC USA. Black’s previous experience includes posts at Coty Inc. and Revlon.