Glanbia to shave €50m off pension deficit
DAIRY giant Glanbia is on track to shave €50m off its €200m pension deficit by carrying out a number of "revisions" to the scheme's arrangements.
The Kilkenny plc made the announcement yesterday, as it reassured the market it remains on track to hit full-year earning's guidance for 2009. A pre-close trading statement also revealed €15m in restructuring charges, largely as a result of redundancy payments.
The group announced 210 redundancies in February, while 65 redundancies in the ailing diary business were later announced in November.
It is understood the latest redundancy round has now been expanded throughout the Irish business with a view to achieving layoffs "well over the 100 mark".
Glanbia said the pension gain followed a "strategic review" that was recently completed, leading to new arrangements that are now "being finalised".
The changes, which have not yet been approved by the Pensions Board, are understood to include modifications to the way various benefits are calculated.
Market sources yesterday said that while the €50m improvement was "good news" it was over-shadowed by Glanbia's overall full-year position.
Having seen its buoyant dairy ingredients business lurch into the red, the company is on track for adjusted earnings per share in the 30c to 31c range, 15pc worse than 2008's performance.
"Strong cost management together with an excellent operational performance could not fully offset an unprecedented trading environment," Glanbia said.