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- Announced the closure by mid-2007
of our Eastern poultry processing plant and our fresh pork processing operations in Saskatchewan; and
- Began construction of new wastewater treatment facilities and other expansions necessary to allow
us to ramp up a second shift at the Brandon pork plant later this year.
We have much left to do! In 2007, we plan to complete the sale of the animal nutrition business, launch the sale of our
Burlington pork plant, integrate our three meat companies into a single organization, close two or more primary processing
operations, commence a second shift in Brandon, and largely complete the restructuring of our Manitoba hog production
operations.
This renaissance will build a stronger and profitable global enterprise and strengthen shareholder value. Restructuring
costs related to
the reorganization of our protein business are estimated to be between $100 million and $150 million, of which
approximately $50 million was recorded in 2006. We anticipate that these restructuring charges and incremental
costs related to the reorganization will impact short-term earnings. However, as a result of these actions we expect to
yield more than $100 million in annualized incremental profitability
by the end of 2009, from a sustainable and growing base.
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