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US food polymer co restructures


US food polymer products company Landec Corporation is to restructure its food business to focus on its specialty-packaged technology products and the marketing and sales of whole produce, the company announced in a statement this week. "Our direction and goals are focused on achieving profitability in our food business for fiscal 2002 and beyond by becoming a technology leader in extending the shelf life of pre-cut and whole fruits and vegetables for rapidly growing segments of the U.S. and export markets, and launching our banana packaging technology early next year," said Gary Steele, CEO of Landec. "Our restructuring plans involve Landec's Apio food subsidiary headquartered in Guadalupe, California. With the growth of Apio's products using our proprietary Intellipac specialty packaging, we project that over 40 per cent of Apio's revenues this year will be derived from technology-based products up from 30 per cent last year, "he continued. The company claims that Apio is currently implementing a restructuring plan that should lead to overall higher margins, lower cash needs and greater predictability in its food business operations. These initiatives will result in a decrease in operating profits in the Company's third and fourth quarters of fiscal 2001.Greg Skinner, Landec's Chief Financial Officer said, "Many of these changes will result in a reduction of operating profits during the third and fourth quarters of fiscal 2001 of approximately $3.0 million to $3.5 million or the equivalent of approximately $0.18 to $0.21 per share. " Landec will be releasing its third quarter results after the market closes on September 11, 2001.

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