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Moulinex cuts 4,000 jobs
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April 26, 2001: 9:16 a.m. ET
French maker of kitchen appliances sees losses widen; slashes jobs
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LONDON (CNN) - French household appliance maker Moulinex-Brandt said on Thursday it will cut 4,000 jobs as annual losses widened.
The maker of items such as electric kettles, toasters and microwaves under the Moulinex, Swan and Krups brands said pro-forma losses for the year widened to  130 million ($116 million) from 16 million in 1999.
The move by Moulinex follows the cutting of 2,000 jobs by Sweden's Electrolux, the world's largest maker of kitchen appliances, as the economic slowdown affects sales
Moulinex said operating losses amounted to 20 million due to high raw material prices, unfavourable exchange rates, sustained losses in microwave ovens and lower productivity.
Results for 2000 were reported as if the merger with Italian electrical firm El.fi's Brandt appliance unit had already been completed.
The company said it presented a rescue plan to unions that includes 4,000 job cuts, including nearly 1,500 in France, 1,700 in Poland and the rest elsewhere in Europe, including Ireland. Moulinex said it will close six plants, three in France and one each in Brazil and Ireland.
The company said the restructuring plan will aim to make the company profitable by 2003, and to attain net profit of between 3 percent and 4 percent of revenue by 2005.
Moulinex said its sales in 2000 amounted to 2.66 billion, little changed from 1999.
Moulinex (PMX) shares fell 6 percent to 4.20 in Paris afternoon trading. 
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