Nov 8 Energizer Holdings Inc said on
Thursday that it would cut more than 10 percent of its
workforce, or about 1,500 people, as it tries to rev up results
in its battery business.
Energizer has been reviewing everything from procurement to
manufacturing and selling, general and administrative costs.
This year it faced pressures including losing shelf space for
batteries at Walmart and stepped up competition with is Schick
and Wilkinson Sword razors from larger rival Procter & Gamble
Co's Gillette razors.
The company said it wants to streamline its lineup of
household products to allow it to focus on the core battery
Plans include closing or streamlining battery factories and
packaging facilities in the United States, Malaysia and Canada
and streamlining lights manufacturing in China.
Energizer expects pre-tax cost savings of about $200 million
from the restructuring, and said the majority of its
restructuring charges should be recorded within the next 12 to
St. Louis-based Energizer is best known for its namesake
batteries. Its other products include Eveready batteries,
Playtex tampons, and Banana Boat and Hawaiian Tropic sunscreen.
The restructuring, which had been in the works for months,
comes after other household products makers such as P&G,
Colgate-Palmolive Co and Kimberly-Clark Corp
announced plans to trim their ranks.
Energizer also said its profit rose to $117 million, or
$1.84 per share, in the fiscal fourth quarter ended on Sept. 30,
from $45.8 million, or 67 cents per share, a year earlier.
Sales of household products fell due in part to
hurricane-driven sales a year earlier, the loss of shelf space
at Walmart and continued weakness in the battery category.
Household product sales fell 6.8 percent on a net basis, and
3.7 percent on an organic basis, which typically excludes
acquisitions, divestitures and foreign exchange.