General Mills has said that it will stop selling some products that are “under-performing” in the US retail market – although it declined to name the lines to be pulled.
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In a notice filed with the Securities and Exchange Commission, the company said that the additional capacity would be diverted to more profitable products. General Mills also emphasised that the move will not impact any employees.
A spokesperson for the company declined to detail which products General Mills would pull, but the group did say that the products generated sales of around US$35m last year.
“As a result of our decisions, we recorded a $24.1m non-cash restructuring, impairment and other exit charge against the related long-lived assets in the second quarter of fiscal 2010,” the group said.
“We expect to recognise an additional $2.5m of other exit costs related to these actions in future periods.”
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By GlobalDataThe charge is consistent with General Mills’ full-year earnings guidance, which includes an estimated $30m in restructuring costs.
