Lamb Weston reverses course on cost-reduction plan, Q1 results beat
Updates
** Shares of frozen potato appetizers supplier Lamb Weston LW.N reverse course to rise as much as 5% to $68.17
** Lamb Weston to cut about 4% of global workforce, close Connell, Washington facility and temporarily trim production in North America to save costs and reduce inventory
** Expects restructuring plan to generate ~$55 mln pre-tax cost savings, $100 mln reduction in capital expenditures in FY25
** Expect further working capital improvements during the year, as we execute restructuring plan - Lamb Weston, on a post-earnings call
** Company cuts fiscal 2025 adjusted EPS forecast to between $4.15 and $4.35, vs prior range of $4.35 to $4.85
** Q1 revenue down 1% at $1.65 bln, but beats analysts' est. of $1.55 bln - LSEG data
** Q1 adjusted EPS at 73 cents vs ests. of 72 cents
** Brokerage Jefferies says Q1 volumes better than feared; notes closing Connell facility "the right move"
** As of last close, stock down ~40% YTD
Reporting by Juveria Tabassum and Neil J Kanatt in Bengaluru
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