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Danone to cut 900 jobs in Europe | Danone to cut 900 jobs in Europe |
(35 minutes later) | |
French food and drink company Danone has said it will cut 900 jobs after weakness in southern European economies hit sales. | French food and drink company Danone has said it will cut 900 jobs after weakness in southern European economies hit sales. |
The owner of Activia yogurt and Evian bottled water reported sales of 20.1bn euros ($26.8bn; £17.3bn) in 2012, up 5.4% from a year earlier. | The owner of Activia yogurt and Evian bottled water reported sales of 20.1bn euros ($26.8bn; £17.3bn) in 2012, up 5.4% from a year earlier. |
But sales in Europe fell 3% following a "severe deterioration" in consumer demand. | But sales in Europe fell 3% following a "severe deterioration" in consumer demand. |
As a result, Danone has announced a cost-cutting plan. | |
The firm plans to cut about 900 management and administrative positions across 26 European countries. | The firm plans to cut about 900 management and administrative positions across 26 European countries. |
"2013 will be a year of transition, with vigorous development in business in our growth markets and a drive to strengthen operations in Europe," said chairman and chief executive Franck Riboud in a statement. | "2013 will be a year of transition, with vigorous development in business in our growth markets and a drive to strengthen operations in Europe," said chairman and chief executive Franck Riboud in a statement. |
The world's biggest maker of yogurts predicted its profit margins would fall again this year, with a negative trend for demand in Europe and prices of raw materials staying high. | |
Its sales growth in 2012 was at the lower end of its own expectations and behind the 5.9% achieved by its Swiss rival Nestle. | |
The company is heavily exposed to European economies, with about 38% of its sales coming from western Europe. | |
Sales at its Spanish dairy division were particularly weak. | |
The company announced in December that it was preparing a two-year cost-cutting programme to save about 200m euros. |
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