Potato Processor Lamb Weston to Close PlantPotato Processor Lamb Weston to Close Plant

Local news reports 379 workers at the plant will be out of a job.

Kristen Kazarian, Managing Editor

October 3, 2024

2 Min Read
sales were down in North America
The quarterly report shares that net sales were down in North America, yet increased internationally.Joff Lee/The Image Bank via Getty Images

In its first quarter fiscal 2025 report, Lamb Weston announced a restructuring plan that includes closure of its Connell, WA, plant.

There are 379 workers at the Connell plant who will lose jobs, according to the Spokesman-Review.

The Eagle, ID-based potato manufacturer stated that restructuring actions are expected to generate approximately $55 million of pre-tax cost savings in fiscal 2025 and a $100 million reduction in capital expenditures in fiscal 2025. As well, the closing of the Connell plant will temporarily reduce production lines and schedules in North America, which will reduce approximately 4% of the global workforce and eliminate unfilled job positions.

“To drive operational and cost efficiencies, we are taking actions that include the permanent closure of an older, higher-cost processing facility and the temporary curtailment of certain production lines and schedules in our manufacturing network," said Tom Werner, president and CEO. "Together, we expect these actions will help us better manage our factory utilization rates and ease some of the current supply-demand imbalance in North America. We are also taking actions to reduce operating expenses, including reducing headcount and eliminating certain unfilled job positions, as well as reducing capital expenditures. The combined estimated savings from these actions are reflected in our updated fiscal 2025 targets.”

Gross profit declined $143.5 million versus the prior year quarter to $356.0 million. Additionally, net sales decreased, $11.2 million to $1,654.1 million, down 1% versus the prior year quarter. And, net income declined $107.4 million versus the prior year quarter to $127.4 million.

For North America only, which includes all sales to customers in the US, Canada and Mexico, net sales declined $31.7 million to $1,103.7 million, down 3% versus the prior year quarter. Volume declined 4%, largely reflecting the impact of customer share losses and declining restaurant traffic in the US.

However, looking at it globally, net sales for the International segment, which includes all sales to customers outside of North America, increased $20.5 million to $550.4 million, up 4% versus the prior year quarter. 

About the Author

Kristen Kazarian

Managing Editor

Kristen Kazarian has been a writer and editor for more than three decades. She has worked at several consumer magazines and B2B publications in the fields of food and beverage, packaging, processing, women's interest, local news, health and nutrition, fashion and beauty, automotive, and IT.

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