General Mills (GIS) Stock Retreats After Announcing Possible 1,400 Job Cut

General Mills (GIS) stock is down after announcing a possible job cut earlier today as a result of closing and selling plants in the U.S. and overseas.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of General Mills (GIS) - Get Report are declining 0.85% to $71.09 late Thursday afternoon after the company announced "restructuring" plans that may include cutting over 1,400 jobs.

The job cuts would come as the Minneapolis, MN-based food manufacturer closes and sells plants across the U.S. and overseas. 

If the company cuts 1,400 jobs, it would lose up to 3.6% of its 39,000 employees, Marketwatch.com reports. 

The company told the SEC in a filing that it had made a "tentative decision" to close its Vineland, NJ plant by the end of fiscal 2019, which would eliminate 370 jobs and cost $67 million. General Mills said it wanted to shut down the Vineland plant "to eliminate excess soup capacity in its North America supply chain."

General Mills also plans to sell its Martel, OH-based dry baking goods facility to Mennel Milling Company, which would cut 180 jobs. The transaction is expected to close by the fiscal 2017 second quarter. If the deal passes, Mennel would become a General Mills supplier.

Additionally, the company will close its Marilia, Brazil-based facility by the fiscal 2017 first quarter, which will impact 420 employees, and will stop producing Trix products at its Nanjing, China-based facility by the same quarter, which will impact 300 employees. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate GENERAL MILLS INC as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, notable return on equity, expanding profit margins and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: GIS

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