Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

ACCO Brands Announces Cost Savings Plan In Europe - Quick Facts

ACCO Brands Corp. (ACCO: Quote), 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.

Register
To receive FREE breaking news email alerts for ACCO Brands Corporation and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
This apparel maker has doubled its earnings per share in just two years and increased its annual earnings forecast from time to time, despite a challenging consumer spending environment. Contributions from acquisitions, efficiency gains from self-owned global supply chain and benefits from 'Innovate-to-Elevate' strategy continue to boost the company's results. Here is a quick summary of the earnings reported after the bell on Nov 20. We have 20+ stocks listed here. The good news is you can skip this step. There is a next move that can make your life a lot easier. Our research team has already done the groundwork for you. All these stocks listed... Design software maker Autodesk, Inc. said Thursday after the markets closed that its third quarter profit fell 81% from last year, as higher costs and expenses more than offset an 11% increase in revenue. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.