The Project K has inducted a ray of hope for Kellogg Company (K). For those who are unaware, Project K is au-courant a restructuring and revival strategy set afloat by Kellogg, the world’s numero uno cereal maker. A cost-cutting plan will include the consolidation of plants and elimination of excess capacity. The company also plans to trim down its global workforce by 7% by the end of 2017. In December 2013, the company announced its plans to shut down existing plants in Australia and Canada and the operating plant at London is also expected to close by the end of 2014. On the other hand, the company is increasing production at a plant in Thailand and building a new Malaysian snack factory to tap new markets. Project K is expected to cost between $1.2 billion and $1.4 billion, and the program is expected to save at least $425 million annually by 2018. It is expected that through Project K, Kellogg will be able to strengthen its existing business in core markets, increase growth in emerging markets, and drive increased value-added innovation.
Studying The Financials
The reported net sales for Q4 2013 were $3.5 billion, which was 1.7% lesser compared to the Q4 of 2012. There was a decrease of 0.9% in the internal net sales of Fourth quarter. Full-year 2013 reported net sales increased by 4.2% to $14.8 billion, an increase of $595 million from full-year 2012 results was observed. Full-year internal net sales increased by 0.3%. Internal results do not consider the effects of foreign currency translation, acquisitions, dispositions, and integration costs. Continue Reading..