* Hospira says '09 profit likely at top end of forecast
* Plan aims for annual savings of up to $140 mln by 2011
* Stock rises 7.8 pct (Adds earnings forecast, details on initiatives, share price)
NEW YORK, March 24 (Reuters) - Medical products maker Hospira Inc HSP.N said on Tuesday it expects to cut about 10 percent of its workforce, or 1,400 jobs, as part of a plan to reduce costs and become more efficient.
The company, whose shares rose almost 8 percent, said most of its job cuts are expected within the next 12 months and that its new "Project Fuel" restructuring initiatives this year could create $8 million to $10 million in annualized pretax cost savings.
Hospira, in a conference call with industry analysts and investors, reaffirmed it expects a profit of $2.62 to $2.72 per share this year. But the restructuring will likely push earnings toward the top of that range, the company said.
Hospira also said it would consider exiting or divesting nonstrategic assets aside from its main growth businesses of generic injectable medicines and medication management systems, including drug infusion pumps.
Price increases or cost cutting might improve profitability of its injectable products, Hospira officials said.
The Lake Forest, Illinois-based company also expects to produce savings by streamlining its product line.
In connection with its actions, Hospira estimates it will incur total pretax charges in the range of $140 million to $160 million, of which about $90 million to $100 million will be incurred during 2009.
The company, which employs more than 14,000, expects the actions to result in annual cost savings of about $110 million to $140 million by the second quarter of 2011.
Hospira shares were up $2.04 or 7.8 percent at $28.37 on the New York Stock Exchange on Tuesday afternoon. (Reporting by Lewis Krauskopf and Ransdell Pierson; Editing by Derek Caney and Matthew Lewis)