logo
Share SHARE
FONT-SIZE Plus   Neg

ACCO Brands Announces Cost Savings Plan In Europe - Quick Facts

ACCO Brands Corp. (ACCO), a branded office and consumer products company, announced a cost savings plan, which will further improve the efficiency and effectiveness of its European business.

The company disclosed in a regulatory filing that the cost savings activities will principally take place in European sales, marketing, customer service and manufacturing operations beginning after the Company negotiates with its various works councils in Europe to develop and finalize implementation plans in accordance with local labor laws and practices.

The financial impact of this plan was incorporated into the previously provided 2013 guidance, the company said. While announcing the fourth-quarter results, the company expected adjusted earnings per share growth of 16% to 28%, resulting in a range of $0.95 to $1.05 for 2013. Analysts polled by Thomson Reuters expect the company to report earnings of $1.00 per share for fiscal 2013. Analysts' estimates typically exclude special items.

The company believes the cost savings activities will result in improved future profitability and add future shareholder value. The cost savings activities are expected to be completed by the second quarter of 2014.

This cost savings plan is expected to result in approximately $9 million in annualized cost savings when fully realized in 2014, with approximately $3.5 million expected to be realized in 2013.

In connection with the plan, the company expects to incur pretax restructuring costs of approximately $12 million in 2013. These costs will predominately be recorded in the first, second and third quarters of 2013.

The company anticipates that $9 million of the costs to be incurred in 2013 will result in cash expenditures, principally related to $8 million for employee termination and severance costs and $1 million for facility closures. An additional $1 million of cash expenditure will be incurred in 2014, principally related to employee termination and facility closures.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
While Democrats have largely been critical of the Republican tax reform plan, President Donald Trump has claimed the proposal has some bipartisan support. Trump suggested to reporters ahead of a meeting with members of the Senate Finance Committee on Wednesday that "people on both sides" support the tax reform plan. Healthcare is very expensive in the U.S., in fact among the most expensive in the world by most measures. Health care facilities are largely owned and operated by businesses in the private sector. Most Americans have access to health care, though costs and services vary from state to state. However,... Electronic Arts Inc. said it is shutting down its Visceral Games Studio and making major changes to its upcoming Star Wars project currently being developed by the studio. Visceral Games is best known for creating the "Dead Space" series.
comments powered by Disqus
Follow RTT