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Reuters
Published
Dec 1, 2011
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Beiersdorf unveils new consumer business revamp

By
Reuters
Published
Dec 1, 2011

Nivea maker Beiersdorf unveiled further restructuring steps at its consumer business to simplify operations and boost the role of geographical regions.

"Beiersdorf is forecasting potential annual savings of approximately 90 million euros ($120 million) starting in fiscal year 2014," the company said in a statement on Wednesday, adding that the restructuring moves could affect up to 1,000 employees worldwide, including 230 in Germany.

The company was budgeting a total extraordinary expense of about 265 million euros, most of which will be taken in 2011, it said.

Beiersdorf said the targeted margin of earnings before interest and tax (EBIT) for the group as a whole as well as for the consumer business segment in 2011 would be unchanged at 10-11 percent.

The Tesa adhesives tape business segment is not affected by the measures, Beiersdorf added.

Beiersdorf in March said it would set aside 270 million euros in a turnaround package through 2012 to invest in skincare and strip out unprofitable make-up and haircare lines, part of an effort to counter eroding market share. ($1 = 0.7499 euros) (Reporting by Jonathan Gould)

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