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Sara Lee warns on 4Q
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May 30, 2001: 2:30 p.m. ET
Weak retail environment, strong dollar cited; management shakeup planned
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NEW YORK (CNNfn) - Food and clothing maker Sara Lee Corp. warned Wednesday that its fiscal fourth-quarter results will fall below forecasts as it announced a management shake-up that will cut some top positions.
The company said its earnings per share for the fiscal year ending June 30 will be in the $1.25 to $1.35 range, rather than the $1.34 to $1.37 guidance it gave at the end of its fiscal third quarter.
That new range would leave Sara Lee (SLE: down $0.61 to $18.54, Research, Estimates) earning 26 to 36 cents a share in the fourth quarter. Analysts surveyed by earnings tracker First Call are forecasting 36 cents in the current quarter.
The company blamed a weak retail environment, strong value of the dollar relative to the euro, and substantial investment in technology and reorganization for the earnings shortfall.
Sara Lee said it is consolidating its intimates and underwear operations in Europe, and that it will combine its hosiery, sock and direct operations in the United States. The total number of job eliminations was not given. The company also identified two senior vice presidents would be retiring later this year.
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Chicago-based Sara Lee is the nation's largest maker of frozen foods, packaged meats and intimate apparel. Food products include Sara Lee and Hillshire Farm brands, while clothing includes Hanes and Playtex. 
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Sara Lee
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