Kraft 2003 Annual Report Download - page 8
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Please find page 8 of the 2003 Kraft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Andfourth,toreduceourcostsandassetbase,weannouncedinJanuary2004
amajorcostrestructuringprogramthatgoesbeyondourongoingproductivity
effortsandthatwillhelpfundourgrowthinitiatives.Overthenextthreeyears,
weanticipateexitingorclosingupto20productionfacilitiesandreducingour
globalworkforcebyapproximately6%,orabout6,000positionsacrossall
levelsoftheorganization.
Theprogramisexpectedtoresultinpre-taxchargesofabout$1.2billion,with
themajorityoccurringin2004and2005.Weexpecttogenerateapproximately
$400millioninannualpre-taxsavingsby2006,whichismorethan50%ofthe
cashoutlaysrequiredtoimplementtheprogram.
It’snevereasytocloseaplantoreliminateajobbecauseoftheimpactithas
onthepeoplewhohaveworkedhardtomakethiscompanysuccessful.However
difficultthesestepsmaybe,achievingsustainablegrowthisultimatelythebest
waytobuildastrongercompanyandmeetourresponsibilitiestothegreatest
numberofemployees,investorsandcommunities.
WebelieveourSustainableGrowthPlanwilldeliverconsistentresultsover
thelongterm.In2004,weexpectconstantcurrencyrevenuegrowthtobearound
3%,includingtack-onacquisitionsandexcludingdivestitures,drivenbyvolume
growthof2%-3%.However,thestep-upinmarketingspendingandananticipated
$0.30pershareinrestructuringchargeswilllowerdilutedearningspershareto
aprojectedrangeof$1.63-$1.70,versus$2.01in2003.
Onalonger-termbasis,webelievewecangrowconstantcurrencyrevenues,
includingtack-onacquisitionsandexcludingdivestitures,inthe3%range,
supportedbyvolumegrowthof2%-3%.Andweexpecttodeliverlong-term
annualearningspersharegrowthof6%-9%.
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