OTHER NEWS - Jan. 15, 1992

Gerber Scales Back Cloth Diaper Business, Cuts Jobs: Gerber Products Co., one of the nation’s leading makers of cloth diapers, said it was drastically reducing that line of business because of foreign competition and the popularity of disposables. The cutback will eliminate 900 jobs and result in a one-time $16-million charge against earnings, or 43 cents a share, to pay for the costs of the retrenchment, Gerber said. Apparel making at Gerber factories in Pelzer, S.C., Emprata, Pa., and Tempe, Ariz., will be affected by the cutback. Gerber will now make diapers from imported cloth instead of weaving them from scratch in the United States. Low-cost weaved cloth from Asia has captured most of the business at diaper services and hospitals, a spokesman said.