WK Kellogg drops after announcing restructuring, forecasts tepid sales

WK Kellogg Co

06/08/2024 16:43

** Shares of Special K cereal maker WK Kellogg  KLG.N  slide
8.3% to $16 
    ** KLG announces reorganization plan, to completely shutdown
its Omaha, Nebraska, plant by 2026-end
    ** Also announces headcount reduction by about 550 people; 
it employed around 3,150 workers at the end of last year
    ** Expects 2024 adjusted net sales to come in at the lower
end of its prior forecast range of 1% growth to 1% decline
    ** The reorganization, approved by the board on July 31, is
expected to result in cumulative restructuring pretax charges of
between $230 mln to $270 mln
    ** Stock down about 23% so far, including session's losses
    

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))