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 18, 1996
Ralcorp Holdings, Inc.
(Exact name of registrant as specified in its charter)
Missouri 1-12766 43-1664297
(State or other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
800 Market Street, Suite 2900
St. Louis, MO 63101
(Address of principal (Zip Code)
executive offices)
(314) 877-7000
(Registrant's telephone number, including area code)
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Item 5. Other Events.
In a Press Release dated June 18, 1996, a copy of which is attached hereto as
Exhibit 99.1 and the text of which is incorporated by reference herein, the
Registrant announced the elimination of approximately 190 of 356 positions at
its Battle Creek, Michigan ready-to-eat cereal plant.
Item 7. Financial Statements and Exhibits.
Exhibit 99.1 Press Release dated June 18, 1996.
SIGNATURES
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 thereunto duly authorized.
RALCORP HOLDINGS, INC.
(Registrant)
Date: June 18, 1996 By: /s/ Richard A. Pearce
---------------------
Richard A. Pearce
Chief Executive Officer
and President
EXHIBIT 99.1
Immediate
Patrick T. Farrell
314/877-7094
or
616/969-8202
RALCORP HOLDINGS TO CLOSE PORTION
OF ITS RALSTON FOODS BATTLE CREEK PLANT
Battle Creek, MI, June 18, 1996 . . . Employees at the Ralston Foods cereal
plant in Battle Creek were informed today that the Company will reduce
approximately half of the production capacity at the plant by no later than
September 30, 1996. The partial closing will ultimately eliminate approximately
190 of 356 jobs at the Battle Creek facility and will reduce excess production
capacity in the Ralston Foods system.
Ralcorp Holdings, Inc., the parent company of Ralston Foods, said today's
announcement is the second phase of a comprehensive restructuring program aimed
at eliminating between $25 million and $30 million from the cost structure of
its cereal subsidiary. Phase one of the restructuring was announced last week
when 100 positions or 25 percent of the Ralston Foods and Ralcorp St. Louis
headquarters staff were eliminated, as were a substantial number of spending
programs throughout the cereal group. No further job reductions are planned by
the Company as part of this restructuring.
"The restructuring allows us to respond to recent and dramatic changes in the
competitive structure of the ready-to-eat cereal category," said Ralcorp Chief
Executive Officer, Richard A. Pearce. "Pricing decisions by branded cereal
manufacturers within the last few months will undoubtedly lead to significant
pressures on profitability in the category and would negatively impact our
ability to compete unless we act accordingly. Our organization will do
everything reasonable to remain competitive, which requires the removal of costs
from our system.
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"The position Battle Creek holds in the cereal industry and the history of
Ralston Foods in this city, which dates back to 1918, makes today's announcement
all the more difficult," Pearce said. "Unfortunately, we are faced with market
conditions that cannot go unanswered."
The Company will work closely with representatives of the American Federation of
Grain Millers Union, Local #66, on issues of assistance for members of the union
impacted by today's announcement. The Company will also provide severance and
outplacement assistance for members of the management and administrative staff
whose jobs are being eliminated. "Our goal is to provide the types of support
needed to help all employees transition to new jobs," Pearce said.
Approximately 160 employees will remain working at the Battle Creek plant and
will provide an important role in the Company's product supply system. The
Battle Creek plant will continue to produce a wide range of flaked cereal
products for sale as private label brands. The CHEX cereal volume currently
being produced at the Battle Creek facility will be consolidated at the Ralston
Foods Cincinnati, OH, plant. The Battle Creek plant could continue to provide
some CHEX production during heavy demand periods. These moves will allow the
Company to remove excess branded capacity from its system and improve operating
efficiencies.
Remaining operations at Battle Creek will benefit from the recently completed $8
million capital improvement project at the plant, originally approved by the
Company's Board of Directors in May 1994. The invested capital was earmarked to
improve and add flaking capacity for use in the production of private label
cereals.
The Company will record a charge against earnings in this year's third quarter
to cover the restructuring effort, including employee-related costs such as
severance benefits, the cost of closing a portion of the Battle Creek plant, and
a write-down of the value of fixed assets related to the restructuring. The
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amount of the charge will be reported when the Company releases third quarter
earnings scheduled for July 29, 1996.
Ralcorp Holdings, Inc., is comprised of Ralston Foods, Beech-Nut baby food,
Bremner crackers and cookies and Keystone, Arapahoe Basin and Breckenridge ski
resorts. The Ralston Foods operation is the largest of the Company's four
subsidiaries and is the nation's leading producer of private label breakfast
cereals and a number of popular branded cereals and snacks, marketed primarily
under the CHEX name. Ralcorp is publicly traded on the New York Stock Exchange
under the RAH symbol.
