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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 6, 1994
SARA LEE CORPORATION
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(Exact name of registrant as specified in its charter)
Maryland
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(State or other jurisdiction of incorporation)
1-3344 36-2089049
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(Commission File Number) (IRS Employer Identification No.)
Three First National Plaza, Suite 4600, Chicago, Illinois 60602-4260
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (312) 726-2600
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Item 5. Other Events
The text of the press release issued by Sara Lee Corporation on
June 6, 1994 is hereby incorporated by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
21. Press release issued by Sara Lee Corporation on June 6, 1994.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
SARA LEE CORPORATION
By: /s/ Gordon H. Newman
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Name: Gordon H. Newman
Title: Senior Vice President/
Secretary/General Counsel
Dated: June 6, 1994
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EXHIBIT INDEX
Exhibit Description
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21 Press release issued by
Sara Lee Corporation on
June 6, 1994
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SARA LEE CORPORATION NEWS
Release Date Three First National Plaza
Chicago, Illinois 60602-4260
FOR IMMEDIATE RELEASE
Contact
ANNE M. MCCARTHY (MEDIA) LYNN L. MCHUGH (ANALYSTS)
1 312 558 8727 1 312 558 8464
SARA LEE CORPORATION ANNOUNCES WORLDWIDE PROGRAM
TO IMPROVE PRODUCTIVITY AND RETURNS, REDUCE COSTS
-- will take $495 million fourth quarter after-tax charge
to cover restructuring actions --
CHICAGO, (June 6, 1994) -- Sara Lee Corporation today announced a worldwide
program to enhance the company's overall efficiency, productivity and
competitiveness in a changing global marketplace. Elements of the plan are
designed to accelerate the achievement of higher returns and lower costs in
targeted businesses, thus improving future growth and profitability.
"At a time when Sara Lee is strong and on course for another record
year, we must intensify our focus on our basic business strategies, including
building our worldwide brands and strengthening our ties to consumers. We must
also accelerate our efforts to ensure that our manufacturing and distribution
systems operate to produce and market the highest quality products at the
lowest possible cost," said John H. Bryan, chairman and chief executive
officer. "Our ability to remain a growth company, competing effectively in
rapidly changing markets, both today and in the future, requires these actions."
The restructuring plan will result in a fiscal 1994 fourth quarter
charge of $732 million before tax. This is the equivalent of $495 million
after tax or $1.03 per share. The company expects full-year results for fiscal
1994, to be announced on or about August 8, to reflect record sales and
earnings, excluding the effects of any unusual charges or accounting changes.
Results for the fourth quarter, to be announced on the same date, are
anticipated to be in line with current analyst expectations, excluding the
restructuring charge.
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Sara Lee Corporation
Page 2
The restructuring plan announced today will involve all four of the
company's lines of business, although the majority of the charge is related to
worldwide segments of the Personal Products operations. The charge
incorporates severance for approximately 6% of the corporation's current
worldwide work force. The restructuring charge also involves the closing,
consolidation and realignment of production and distribution facilities
throughout the world.
The company expects the restructuring plan to begin lowering operating
costs in fiscal 1995 and to generate increasing savings in subsequent years,
growing to an annual savings of approximately $250 million beginning in fiscal
1998. Savings from the planned actions will be used for both business-building
initiatives and for profit improvement.
"While Sara Lee will continue to make carefully targeted investments in
our businesses, we will adhere to strict return parameters to ensure that all
of our operations achieve appropriate levels of profitability," said Mr. Bryan.
Details of work force reduction and identification of facilities for
closure or consolidation will be announced after implementation steps have been
developed in collaboration with affected employees and communities. The
corporation will continue its historic practice of providing severance and
benefit packages, as well as providing a comprehensive job replacement and
employee assistance program.
"The actions we are implementing through this plan will keep Sara Lee
Corporation in the forefront of vital, growing, U.S.-based global companies
with flexible, efficient production, distribution and management organizations
that are responsive to the dictates of a changing marketplace," Mr. Bryan
concluded.
Sara Lee Corporation is a global food and consumer products company with
138,000 employees throughout the world at the end of fiscal 1993. The
corporation markets a variety of products under leading brand names including
Hanes, Hanes Her Way, L'eggs, Bali, Champion, Playtex, Dim, Kiwi, Hillshire
Farm, Ball Park, Jimmy Dean, Douwe Egberts and Sara Lee.
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