NEW YORK (AP) — Alberto-Culver Co., which makes personal care products, plans to close a Toronto manufacturing plant by the end of its fiscal second, eliminating about 115 jobs, according to a regulatory filing Monday.
As a result of the closing, the company expects to record pretax restructuring and other charges of about $8 million in fiscal 2008, of which about $6 million will be recognized in the first quarter, the company said. These charges are in addition to other restructuring costs related to the company's separation from Sally Beauty Co.
The majority of production at the plant will be shifted to other manufacturing facilities.
The new charges include $4 million for fixed asset impairments, $2 million in severance and other employee benefits, and $2 million of other exit costs, including costs to transfer equipment to other Alberto-Culver plants.
The closing will help the company streamline operations and improve efficiencies, Alberto-Culver said.
All personnel affected by the closing have been notified, Alberto-Culver said.
Earlier Monday, the company reported a 45 percent drop in fiscal fourth-quarter earnings related to higher advertising expenses and lower profit from discontinued operations. The company's fourth quarter ended Sept. 30.
Alberto-Culver shares rose 42 cents to $24.99 in morning trading.