$Stock*Shop*Charts*News*Option$

[sludgehound]

HSY to Cut 300 Jobs; Cuts Sales Forecast Again

You know even during First Great Depression Hershey didn't cut jobs. Just sayin'.

Hershey Co. said Friday that it would cut about 300 jobs as part of a plan to simplify its business and it lowered its sales and earnings forecasts for the year as it continues to struggle with weak sales in China .
Shares of Hershey, down 7.5% over the past 12 months, fell another 2.4% to $90.02 in premarket trading.
Hershey said it expects to save $65 million to $75 million , mostly in 2016, as a result of the streamlining. But the company said it would take charges of $100 million to $120 million , or 29 cents to 35 cents a share, related to the job cuts.
"Removing cost and complexity from our business will make us more flexible to quickly react to changing consumer and competitive marketplace trends," said Chief Executive John P. Bilbrey in a news release.
Hershey also on Friday cut its sales-growth forecast for the year to 2.5% to 3.5%, down from its previous forecast for 4.5% to 5.5% growth. The forecast includes a 1.5 percentage point benefit from acquisitions and divestitures and a 1.5 percentage point hit from foreign exchange.
Excluding the impact of currency, sales are expected to increase about 4% to 5%, down from a previous forecast of 6% to 7% growth.
Hershey said its sales were hurt by lower-than-expected chocolate-sales growth in China in April and May. The company had cut its sales forecast in April, as foreign-currency impacts and softness in China weighed on results in its first quarter.
The company also slashed its adjusted-earnings forecast to $4.10 a share to $4.18 a share, down from its previous forecast of $4.30 a share to $4.38 a share.
The maker of America's top-selling chocolate brand, Reese's, as well as its namesake candy bar, has been struggling with sluggish sales in certain U.S. stores and international markets, on top of rising costs for ingredients such as dairy and cocoa.
Write to Chelsey Dulaney at [e-mail]
Access Investor Kit for The Hershey Co.
Visit http://www.companyspotlight.com/partner?cp_code=P479?=US4278661081
Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires
06-19-15 0802ET
Copyright (c) 2015 Dow Jones & Company, Inc.