Latest news with #JanaPartners
Yahoo
6 days ago
- Business
- Yahoo
Lamb Weston sets out savings quest
Lamb Weston Holdings has outlined fresh plans for cost savings, moves that will affect jobs at the potato-products group. The US-listed business, which has faced investor pressure in recent months, is looking to make "at least" $250m in savings. President and CEO Mike Smith said the company was targeting '$200m in annualised run-rate savings and $120m of favourable working capital improvements' by the end of its 2027 fiscal year. 'We expect that these cost savings and working capital improvements together with lower levels of capital expenditures will help drive improved profitability and cash flow,' he said. Last month, Lamb Weston bowed to pressure from shareholders Jana Partners and Continental Grain Co. to revamp its board of directors. Jana Partners had been calling for changes to Lamb Weston's board since it took a minority stake in the company last October and had criticised the business for what it called 'self-inflicted mis-steps' in terms of its performance. Earlier in October last year, Lamb Weston had slashed its profit targets in light of a restructuring plan that includes the permanent closure of a US factory and job cuts. The fresh savings plan includes 'headcount reductions' that amount to around 4% of Lamb Weston's global workforce, the company said yesterday (23 July). The company did not disclose specific numbers but said the cuts 'also reflect the elimination of certain unfilled positions'. Smith added: 'We enter fiscal 2026 with increased discipline around our customer relationships and our cost structure, along with a clear and executable plan of how to win with customers and succeed in a dynamic marketplace. Our Focus to Win plan prioritises markets and channels where we are well positioned to win for the long-term and doing what our team does better than anyone else.' The plan was announced alongside Lamb Weston's annual financial results. Net income fell 51% to $357.2m in the year to 25 May. On an adjusted basis, net income dropped 35% to $478.6m. Net sales were flat at $6.45bn after a 4% rise in the final quarter of the year. Fourth-quarter net income fell 7% but increased 8% on an adjusted basis. Smith added: 'Lamb Weston returned to growth in the second half of the year with momentum in customer wins and retention, delivering financial results above our updated expectations.' Bernstein analyst Alexia Howard described the company's fourth-quarter results as 'very solid' pointing to 'strong volumes and cost containment'. "Lamb Weston sets out savings quest" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
01-07-2025
- Business
- Yahoo
Lamb Weston bows to pressure from Jana Partners with board revamp
Lamb Weston has bowed to pressure from shareholders Jana Partners and Continental Grain Co. by restructuring the potato-products supplier's board. The publicly listed US group said it will expand its board composition to 13 members from 11 previously, with four new directors appointed by Lamb Weston and another two mutually agreed by the French fries maker, activist investor Jana Partners and Continental Grain. Lamb Weston added the appointments will take place no later than 11 July. Jana Partners has been calling for a change in the company board's since it took a minority stake in Lamb Weston last year and had criticised the business for what it called "self-inflicted mis-steps" in terms of its performance. Those steps included profit warnings, inventory write-downs, plant closures and staff layoffs. As Jana Partners pressed for a change of leadership and/or a sale of Lamb Weston in December a new CEO was appointed in the form of Michael Smith. Both Jana Partners and Continental Grain expressed their satisfaction with the board changes in a joint statement with Lamb Weston yesterday (30 June). Scott Ostfeld, a managing partner and portfolio manager at the activist group, said: 'I look forward to working with the board and management to improve performance and deliver shareholder value.' Ari Gendason, the chief investment officer of Continental Grain, added: 'While substantial opportunity remains, today's announcement marks an important step in positioning Lamb Weston for long-term value creation. 'We are pleased to have reached this resolution and will continue to work constructively with Lamb Weston as it takes steps to enhance its near and long-term performance.' The new board appointees picked by Lamb Weston are Bradley Alford, Timothy McLevish, Scott Ostfeld and Ruth Kimmelshue. The mutually agreed members are Lawrence Kurzius and Paul Maass. Alford, a consumer goods veteran with experience at US food peer Conagra Brands and Swiss giant Nestlé, will take on the role of board chairman. Twelve of the new director picks will be independent. Meanwhile, Charles Blixt, WG Jurgensen, Robert Niblock, and Maria Renna Sharpe will step down from the board. The new board composition is set to be formalised at the company's 2025 annual general meeting, where the appointed directors will stand for election. Commenting on the board reshuffle, CEO Smith said: 'Following our constructive engagement with them [Jana Partners and Continental Grain] and taking into account perspectives gleaned from discussions with additional stockholders, we are confident this outcome is in the best interests of the company and all of our shareholders.' In February, Lamb Weston received an unsolicited offer from TRC Capital Investment to buy up to two million shares of the company. It also emerged in December that another US food peer of the company, Post Holdings, was reportedly interested in acquiring Lamb Weston. Post Holdings did not respond to Just Food's request for comment on the speculation at the time. Lamb Weston reported its latest results in April. Third-quarter net sales rose 4% to $1.52bn from a year earlier but net income was flat at $146m. Adjusted EBITDA climbed 6% to $363.8m. The company left its fiscal 2025 outlook unchanged, targeting net sales of $6.35bn to $6.45bn. Adjusted EBITDA was forecast at $1.17bn to $1.21bn. Adjusted net income was expected of $440m to $460m and adjusted diluted EPS at $3.05 to $3.20. "Lamb Weston bows to pressure from Jana Partners with board revamp" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
30-06-2025
- Business
- Yahoo
Here's Why This Fry Supplier's Stock Fell Monday
Lamb Weston shares fell Monday, when the company announced it reached an agreement with the activist investment firm, Jana Partners Management. Investors sent the stock higher when Jana's stake in Lamb Weston was disclosed, suggesting they may have envisioned Jana's involvement leading to a more dramatic outcome. Under the agreement, Jana will play a role in appointing six board members, including the next chairman, former Nestlé USA leader Bradley Weston shares were among the S&P 500's worst performers to start the week as investors learned that the activist investors pushing for change at the fry company may have delivered less than hoped for. Lamb Weston Holdings (LW) on Monday said it plans to appoint four members to its board under a 'cooperation agreement' with Jana Partners Management and the Continental Grain Company. Bradley Alford, a former CEO of Nestlé USA, will be named chairman. The parties mutually selected two other potential board members, who will help expand the board from 12 to 13 seats, the release said. Investors may have envisioned Jana's involvement leading to a more dramatic outcome. Jana Managing Partner Scott Ostfeld had previously said the 'status quo is no longer tenable' and pushed for a complete overhaul at the company. Shares shot higher when Jana's stake in Lamb Weston was disclosed, underscoring investors' desire for change, according to a letter Ostfeld sent the Board in December. Lamb Weston should partner with Jana to 'rehabilitate the Company' or 'work with its financial advisors to explore a sale,' he said then. The company's shares finished Monday down almost 3%. The McDonald's (MCD) supplier's shares are off more than 22% so far this year. 'We are pleased to have reached this collaborative outcome with the Company,' Jana Managing Partner Scott Ostfeld said in a statement today. 'I look forward to working with the Board and management to improve performance and deliver shareholder value.' Read the original article on Investopedia
Yahoo
30-06-2025
- Business
- Yahoo
Here's Why This Fry Supplier's Stock Fell Monday
Lamb Weston shares fell Monday, when the company announced it reached an agreement with the activist investment firm, Jana Partners Management. Investors sent the stock higher when Jana's stake in Lamb Weston was disclosed, suggesting they may have envisioned Jana's involvement leading to a more dramatic outcome. Under the agreement, Jana will play a role in appointing six board members, including the next chairman, former Nestlé USA leader Bradley Weston shares were among the S&P 500's worst performers to start the week as investors learned that the activist investors pushing for change at the fry company may have delivered less than hoped for. Lamb Weston Holdings (LW) on Monday said it plans to appoint four members to its board under a 'cooperation agreement' with Jana Partners Management and the Continental Grain Company. Bradley Alford, a former CEO of Nestlé USA, will be named chairman. The parties mutually selected two other potential board members, who will help expand the board from 12 to 13 seats, the release said. Investors may have envisioned Jana's involvement leading to a more dramatic outcome. Jana Managing Partner Scott Ostfeld had previously said the 'status quo is no longer tenable' and pushed for a complete overhaul at the company. Shares shot higher when Jana's stake in Lamb Weston was disclosed, underscoring investors' desire for change, according to a letter Ostfeld sent the Board in December. Lamb Weston should partner with Jana to 'rehabilitate the Company' or 'work with its financial advisors to explore a sale,' he said then. The company's shares finished Monday down almost 3%. The McDonald's (MCD) supplier's shares are off more than 22% so far this year. 'We are pleased to have reached this collaborative outcome with the Company,' Jana Managing Partner Scott Ostfeld said in a statement today. 'I look forward to working with the Board and management to improve performance and deliver shareholder value.' Read the original article on Investopedia
Reuters
30-06-2025
- Business
- Reuters
Lamb Weston settles with Jana, giving activist big voice on board
NEW YORK, June 30 (Reuters) - Lamb Weston (LW.N), opens new tab reached a settlement with Jana Partners which gives the activist investor a big presence on the french-fry maker's board and averts a bruising board fight. The agreement, announced on Monday, will add four of Jana's proposed director candidates to the board and two other mutually agreed-upon directors, expanding the board from 11 to 13 members. The Jana candidates are Bradley Alford, a former Nestle USA CEO who will become chairman; Timothy McLevish, a former Lamb Weston executive chairman; food industry executive and Continental Grain adviser Ruth Kimmelshue; and Jana's portfolio manager Scott Ostfeld. The two new mutually agreed on directors are Lawrence Kurzius and Paul Maass, who both have food industry experience as top executives. The truce marks one of the biggest settlements in terms of directors changing over this year and comes after Jana spent more than seven months pushing management for operational and capital improvement and possibly even a sale. Lamb Weston, based in Eagle, Idaho, with a market value of roughly $7.6 billion, supplies frozen potato products, including tater puffs and hash brown patties, to companies like McDonald's (MCD.N), opens new tab and restaurant company Yum Brands (YUM.N), opens new tab. The company's stock price has dropped more than 35% in the last 12 months and slipped modestly to trade at $53.33 early on Monday. Lamb Weston CEO Mike Smith, who moved into the top job late last year after a poor earnings announcement amid shrinking demand for its products, welcomed the settlement. "We are confident this outcome is in the best interests of the company and all of our shareholders," he said. Jana had been laying the path to a bruising board fight and faced a deadline of Monday to nominate director candidates and officially launch a fight. In a survey, commissioned by Jana, roughly half of Lamb Weston's top 50 shareholders said they wanted the entire board thrown out, giving Jana ammunition to press its points. The hedge fund, which owns roughly 7% of Lamb Weston, teamed up with Continental Grain, a privately held company that owns and operates companies in food and agribusiness, on the investment. Jana has history with Lamb Weston. A decade ago, it pushed packaged food company Conagra Brands (CAG.N), opens new tab to divest Lamb Weston, which had been a unit since it bought the french fry maker in 1988. In 2016, Lamb Weston began trading as a public company. Jana previously called on Frontier Communications to sell itself before Verizon Communications bought it. The firm also pushed for a sale of New Relic, which was taken private by TPG and Francisco Partners. And it pushed for a sale of Zendesk, which was taken private in 2022 by investment firms led by Hellman & Friedman and Permira.
