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UPDATE 1-Lance says cuts workforce by 2 pct
June 4, 2010 / 5:06 PM / 8 years ago

UPDATE 1-Lance says cuts workforce by 2 pct

* Sees $3 mln charge in Q2

* Sees annual savings of about $6 mln

* Backs FY outlook

June 4 (Reuters) - Snack-food maker Lance Inc (LNCE.O), whose results have been hit by competitors’ promotional pricing, said it cut its workforce by about 2 percent to reduce costs and improve margins.

The company -- which has more than 5,000 employees, according to its website -- expects to record a related pre-tax charge of about $3 million in the second quarter.

It sees benefits of about $6 million annually from these cost reductions.

Lance, whose products include Cape Cod and Stella D‘oro, has been posting weak profits over the past two quarters and disappointing investors with its outlook as intense promotional pricing ate into its margins and also hurt sales.

The company said the reduction in workforce was completed this week and it was not planning to cut more jobs.

Lance also said it was backing its full-year outlook. In May, it projected earnings per share of $1.10 to $1.25, excluding items, on revenue of $930 million to $950 million for 2010.

Shares of the company were down 1 percent at $19.36 Friday afternoon on Nasdaq. (Reporting by Mihir Dalal in Bangalore; Editing by Maju Samuel)

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