Restructuring costs for these actions will be incurred through 2014 and are expected to total $250 to $350 million after tax. The businesses that will be exited or divested generate annual net sales of approximately $500 million and negligible operating profit.
"The strategic changes we will be making in Europe should allow us to better focus on our best market positions and growth opportunities, improve our underlying profitability and enable more sustainable returns going forward in this part of the world,” says chairman and CEO Thomas Falk. “These moves are further evidence of the portfolio management approach we use to run our company and the financial discipline embedded in our Global Business Plan."
Third quarter sales were down 3% to 5.2% due largely to unfavorable currency exchange rates. Operating profit rose 18% to $783 million.