ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, November 13, 1996 TAG: 9611130075
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
DATELINE: MIAMI
SOURCE: Associated Press
Home appliance-maker Sunbeam Corp. will eliminate half of its 12,000 jobs and drop its lesser-known products such as patio furniture to concentrate on kitchen appliances.
The drastic revamping announced Tuesday is the turnaround plan of Albert Dunlap, who was hired by Sunbeam months after slashing costs and 11,200 jobs at Scott Paper Co. to put it up for sale.
Dunlap's arrival at Sunbeam last summer bolstered confidence on Wall Street that the company would either become an attractive takeover target or a more efficient survivor, building expectations for a company known for its Sunbeam, Oster and Mixmaster brands.
Sunbeam stock more than doubled, from $12.25 a share in July to Tuesday's close of $25.25. After the announcement, Sunbeam was down 62 1/2 cents on the New York Stock Exchange.
The cutbacks cover all levels of the company, including 3,300 jobs at 12 facilities with product lines to be to shut down or sold, 2,100 jobs at six facilities to be closed, 700 administrative jobs and 185 headquarters jobs.
Dunlap is shrinking Sunbeam from 26 to eight factories and dropping 87 percent of its products.
The company will drop production of furniture, clocks, thermometers, and decorative bedding and seek buyers for those lines. The remaining businesses will make kitchen appliances, personal care, health care, barbecue and professional care products.
Dunlap's goal after a speedy reorganization is to double revenues to $2 billion and boost operating profits from 2.5 percent to 20 percent in three years.
The announcement created confusion at Sunbeam, with uncertainty if there would be new owners, layoffs or lower wages.
Dunlap announced an $18 million third-quarter loss last month by saying Sunbeam's costs are inflated and the company has no growth strategy.
LENGTH: Short : 45 linesby CNB