Shares of Lamb Weston Holdings (LW), one of the world’s largest makers of frozen potato products, announced a restructuring that 🌟includes production cuts and layoffs.

The company said it would be closing its Connell, Was♎h. plant, temporarily curtailing production lines and schedules in North America; slashing its workforce by about 4%; and eliminating unfilled positions. Lamb Weston said the mov🦩es are expected to create $55 million in cost savings and reduce capital expenditures by $100 million in fiscal 2025. It anticipates taking a $200 million to $250 million charge to pay for them. 

The news lifted Lamb Weston's stock. The shares, up more than 3%, were recently among the S&P 500's top gainers.

CEO Tom Werner said the changes “are proactive steps designed to improve our operating efficiency, profitability and 澳洲幸运5开奖号码历史查询:cash flows, while also positioning us to continue to make strategic investments to support our customers and create value for our stakeholders over the long-term.”

The news came as Lamb Weston posted first quarter fiscal 2🍌025 adjusted diluted earnings per share (EPS) of $0.73, a penny more than expected by analysts surveyed by Visible Alpha. Revenue, which fell 1% to $1.65 billion, also beat forecasts. 

The company reduced its guidance for full-year adjusted net income and adjusted diluted EPS. It also lowered its outlook for adjusted selling, general, and administrative expenses (SG💜&am൩p;A) to account for the savings in labor costs from the job reductions. 澳洲幸运5开奖号码历史查询:Restaurant traffic has remained "soft," the company said.

Shares of Lamb Weston are down more than 35% this year.