SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 8, 2002
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HERSHEY FOODS CORPORATION
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(Exact name of registrant as specified in its charter)
Delaware 1-183 23-0691590
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
100 Crystal A Drive, Hershey, Pennsylvania 17033
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (717) 534-6799
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Page 1 of 3 Pages
Exhibit Index - Page 3
INFORMATION TO BE INCLUDED IN REPORT
Item 9 Regulation FD Disclosure
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On January 8, 2002, Hershey Foods Corporation (the "Corporation")
announced a higher realignment charge and additional anticipated savings from
the value-enhancing initiatives announced on October 24, 2001. The changes
reflect primarily higher employee acceptance of its previously announced
voluntary workforce reduction program, one part of a broad strategy to enhance
the future operating performance of the Company. The business realignment
charges originally announced in October 2001 will increase from $275 million to
$310 million and from $1.24 to $1.39 per share-diluted, while projected savings
will increase approximately $15 million annually to $75-$80 million per year
when fully implemented. As previously announced, these ongoing savings will be
substantially reinvested in enhanced brand building and selling capabilities.
The Corporation expects to record a charge of $1.25 per share-diluted in the
fourth quarter of 2001, with the $.14 per share-diluted balance of the
realignment charge to be recorded during 2002. The January 8, 2002 press
release, announcing the higher realignment charge and additional anticipated
savings, is incorporated herein by reference, and a copy is furnished herewith
as Exhibit 99.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: January 8, 2002
HERSHEY FOODS CORPORATION
By /s/ Frank Cerminara
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Frank Cerminara
Senior Vice President, Chief Financial
Officer
Page 2 of 3 Pages
Exhibit Index - Page 3
Exhibit Index
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Exhibit No. Description
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99 Press release, dated January 8, 2002, announcing a higher
realignment charge and additional anticipated savings from
the Corporation's value-enhancing initiatives announced
October 24, 2001.
Page 3 of 3 Pages
Exhibit Index - Page 3
[Logo Hershey Foods Corporation appears here] Hershey Foods NEWS
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Corporate Communications . Hershey Foods Corporation . 100 Crystal A Drive .
Hershey, PA 17033
E-mail: pr@hersheys.com . http://www.hersheys.com
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Hershey Announces Higher Realignment Charge and
Additional Savings from Value-Enhancing Strategy
HERSHEY, Pa., January 8, 2002 - Hershey Foods Corporation (NYSE:HSY) today
announced a higher realignment charge and additional anticipated savings from
its value-enhancing initiatives announced on October 24, 2001. The changes
primarily reflect higher employee acceptance of its previously announced
voluntary work force reduction program, one part of a broad strategy to enhance
the future operating performance of the Company.
As a result of the changes, the business realignment charges announced in
October will increase from $275 million to $310 million and from $1.24 to $1.39
per share-diluted, while projected savings will increase approximately $15
million annually to $75-$80 million per year when fully implemented. Consistent
with the strategic direction, on-going savings will be substantially reinvested
in enhanced brand building and selling capabilities.
The Corporation expects to record a charge of $1.25 per share-diluted in the
fourth quarter of 2001, including $.22 per share-diluted of operating charges
related to its previously announced raw material inventory reductions and $1.03
per share-diluted related to previously announced restructuring activities,
including the work force reduction initiatives. The $.14 per share-diluted
balance of the realignment charge will occur during 2002.
- more -
"Our underlying business performance remains on track and in line with previous
guidance. This greater acceptance of our voluntary work force reduction program
is good for both our employees and our shareholders. It enables Hershey to
further streamline the organization and free up additional funds for investment
in our business," said Richard H. Lenny, Chairman of the Board, President and
Chief Executive Officer.
SAFE HARBOR STATEMENT
This release contains statements which are forward-looking. These statements are
made based upon current expectations which are subject to risk and uncertainty.
Actual results may differ materially from those contained in the forward-looking
statements. Factors which could cause results to differ materially include, but
are not limited to: changes in the confectionery and grocery business
environment, including actions of competitors and changes in consumer
preferences; changes in governmental laws and regulations, including taxes;
market demand for new and existing products; the Company's ability to implement
improvements to and reduce costs associated with the Company's distribution
operations; pension cost factors, such as actuarial assumptions and employee
retirement decisions; the Company's ability to sell certain assets at targeted
values; and changes in raw material and other costs, as discussed in the
Company's Annual Report on Form 10-K for 2000.
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Contact: John C. Long (717) 534-7631
Financial Contact: James A. Edris (717) 534-7556