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Supervalu Cuts 4500 Jobs

Move Should Revive Stock Price

EDEN PRAIRIE, Minn. , 3:36 p.m. EDT April 5, 2001 -- Supervalu Inc. announced a major restructuring that includes cutting 4,500 jobs and the closing of stores and distribution facilities.

The food wholesaler and retailer, based in the western Minneapolis suburb of Eden Prairie, said Wednesday that the cuts are an attempt to revive its stock price and improve earnings. Supervalu is taking a $240 million fourth-quarter restructuring charge, which translates to $1.16 per share, as it attempts to refocus its operations.

The company estimates that the cuts will generate $60 million in cash flow and have a minimal impact on earnings in 2002, but will contribute 7 cents to 9 cents per share the following year.

In Minnesota, where the company employs 10,000 workers, fewer than 300 job losses are expected. Jeff Noddle, Supervalu president and chief operating officer, described the cuts in Minnesota as minor.

-- Anonymous, April 06, 2001