Sunbeam to Close More Factories, Cut Jobs
Sunbeam Corp. Chief Executive Al Dunlap will unveil his cost-cutting plan for three acquired companies at an analysts’ meeting Monday. Dunlap, trying to duplicate his slashing of Sunbeam’s costs two years ago, is expected to fire 30%, or more, of the 9,100 employees at Coleman Co., Signature Brands USA Inc. and First Alert Inc., as well as shutter a similar percentage of their 21 factories. Dunlap wants to cut at least $150 million a year in costs at the three companies. Yet with sales declining at Delray Beach, Fla.-based Sunbeam, he’s under pressure to not only slash costs but also to come up with a credible program to boost sales of Coleman’s lanterns and other camping products, Signature Brands’ Mr. Coffee machines and First Alert’s smoke detectors. Sunbeam shares have lost nearly half of their value since March 4, after Sunbeam warned of lower-than-expected sales for its first quarter. Sunbeam rose 50 cents to close at $27.63 on the NYSE.