TreeHouse Foods Inc. on Thursday said it was shuffling its executive ranks, shuttering a plant in Canada and trimming back its manufacturing capacity in Michigan as the company feels the weight of its acquisition of ConAgra Foods Inc.'s private-label business.
The Oak Brook, Ill., food company also reported weaker-than-expected third-quarter results.
Chief Financial Officer Dennis Riordan, who was slated to retire, will instead take the post of interim president, replacing Christopher Sliva, who resigned to pursue another career opportunity.
Mr. Riordan will oversee both of the company's arms?Bay Valley Foods and TreeHouse Private Brands?as Treehouse searches for a permanent replacement for Mr. Sliva.
Matthew Foulston, chief financial officer of minerals producer Compass Minerals International Inc., will take over as CFO of TreeHouse. He is slated to make the transition no later than Dec. 2.
TreeHouse said the closure of its Delta, British Columbia, plant, which produces frozen griddle products, will impact about 90 employees. Production is slated to end in early 2018. The partial closure of a plant in Battle Creek, Mich., will affect about 100 out of 160 employees over a 15-month period beginning next year.
TreeHouse said it expects total costs to close the facilities to be around $14.7 million, or 16 cents a share, with the fourth quarter of this year shouldering $4 million in charges.
Treehouse reported a third-quarter profit of $37.2 million, or 65 cents a share, up from $28.4 million, or 65 cents, a year earlier.Excluding certain items, the company posted adjusted earnings of 70 cents a share, compared with 86 cents a share a year ago.
Revenue nearly doubled to $1.59 billion, but the cost of sales also jumped, more than doubling to $1.3 billion.
Analysts polled by Thomson Reuters projected earnings of 78 cents a share on $1.64 billion in sales.
TreeHouse said costs linked to the integration of the private-label business it acquired from ConAgra weighed on its results for the quarter. TreeHouse bought the business for about $2.7 billion in a bet that comes amid stiff competition for shelf space and sluggish growth for conventional packaged foods.
"The third quarter was a tale of two cities," said Chief Executive Sam Reed. "Our legacy business continued to perform well?On the other hand, while the private brands business showed sequential improvement, its results fell short of our expectations for the quarter."
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(END) Dow Jones Newswires
November 03, 2016 10:35 ET (14:35 GMT)
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