just tackled the problem of watery ketchup, introducing a special cap that's supposed to slough off watery juices. They've fixed the problem of boring red ketchup, creating a green colored version that drives kids wild. And now, it's tackling problems in the company's pet-food and tuna fish lines.
The company announced the streamlining of these two businesses, closing a Puerto Rican tuna production center, consolidating all pet-food production in Bloomsberg, Penn. and telling investors that more asset sales could be in the works. Heinz's European supply chain is also due for restructuring, with the company vowing to centralize operations there.
A grand total of 1,900 jobs will be lost as a result of the initiatives, which the company said will result in savings of $25 million next year. By 2004, Heinz estimates cost savings could amount to $60 million annually.
The company announced third-quarter earnings of 65 cents a share, in-line with what analysts expected and only 2 cents better than the year-ago quarter. But, sales were only $2.27 billion, lower than the $2.29 billion it had last year. The miss was blamed on currency woes, which, if discounted, would have put this quarter's sales up 3.7% over last year.