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Rubbermaid reorganizes
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January 21, 1998: 11:15 a.m. ET
Plastic goods maker to consolidate units, cut jobs in major restructuring
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NEW YORK (CNNfn) - Rubbermaid Inc. will establish a global procurement organization, consolidate its manufacturing and distribution units and cut jobs as part of a major restructuring, the company announced Wednesday.
"Now we are moving to broaden our market leadership -- to become the lowest-cost producer, to provide a premier level of service and strengthen our brand equity," said Wolfgang Schmitt, Rubbermaid chairman and chief executive.
The changes are expected to result in cost savings of $30 million in 1998 and $200 million a year by the end of 2000. A pre-tax charge of at least $200 million also is anticipated, affecting mostly North American and European operations.
Streamlining and automation will result in "significant" worldwide job cuts, the company said, though it said it won't disclose figures until its staff is notified.
The move toward centralized procurement should be completed by the end of the first quarter, the company said.
Rubbermaid (RBD), which makes plastic housewares and commercial products, also warned that fourth-quarter earnings may miss Wall Street's expectations. The company anticipates net income of $32 million, or 21 cents a share, compared with First Call's prediction of 25 cents a share for the quarter. 
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Rubbermaid
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