In Brief: IFF aroma chemical streamlining
This article was originally published in The Rose Sheet
Executive Summary
IFF aroma chemical streamlining: Aroma chemical production at IFF's Union Beach, N.J. plant will be phased out by Dec. 31, 1997, while "smaller capacity" units in Mexico City and Rio de Janeiro are being closed, the company said. The changes, which represent the "final phase" of IFF's plan to "expand and streamline" its worldwide aroma chemical productions, are expected to "result in greater production capacity and operating efficiencies" that will "ultimately increase pretax earnings by $20 mil. annually," the firm stated. IFF will release 220 employees, including 170 at the Union Beach facility, as a result of the closures. In addition, the closings will result in a one-time pretax charge of $50 mil. during the second quarter of 1996. IFF predicted that the streamlining will reduce the firm's earnings per share by 28 [cents], which, compounded with "sluggish retail sales" and "highly competitive conditions" for aroma chemicals, will result in EPS between 54 [cents] and 56 [cents] for the quarter versus EPS of 68 [cents] a year ago...