General Mills representatives aren't saying how a future cost-cutting plan could affect its distribution plant in the Palmyra area.
General Mills Chairman and CEO Ken Powell said in a news release Wednesday the company’s fiscal 2014 sales and operating profit results were “disappointing,” with net profit down 2 percent from fiscal 2013. Sales also were down 4 percent in the company’s fourth quarter compared to year-ago results.
That will lead the Minneapolis-based company to a number of cost-saving measures, including a “formal review of its North American manufacturing and distribution network,” of which the Palmyra distribution facility is a part.
Kirstie Foster, General Mills spokeswoman, said in an email Wednesdayl the plan was just announced and there are “no details to share at this point,” including what effect this could have on the Palmyra facility. According to the news release, further details will be announced “in the coming months.”
Foster also said the company does not disclose employment figures or facility details.
General Mills leases the facility in the East Point Trade Center from Texas-based Hillwood Investment Properties. The distribution center is operated by Ohio-based contract logistics company Exel Inc., which has a regional hub in Hampden Township.
After the third quarter of 2013, the most recent statistics available from the Pennsylvania Center for Workforce Information and Analysis, Exel Inc. was listed as the 35th largest employer in Lebanon County.
Between the possible changes to the manufacturing and distribution network and also reductions in overhead, the company said it expects to save about $40 million pretax in fiscal 2015 with additional savings in 2016.