Restructuring Costs Affect Ben & Jerry's 4Q and FY99

Restructuring Costs Affect Ben & Jerry's 4Q and FY99

SOUTHBURLINGTON, Vt.--Ben & Jerry's Homemade Inc. (NASDAQ:BJICA) reported resultsfor its fourth quarter and 1999 fiscal year ended Dec. 25, 1999, including theimpact of special restructuring charges to both periods. Sales for the quarterreached 16.5 percent to $51.7 million, while gross margin improved almost 5points to 35.3 percent of sales. Expenses rose four points as a percentage ofsales, and a restructuring charge of $8.6 million was also charged to thequarter. As a result, the company recorded a net loss of $4.6 million or $.64per share, compared to a net gain of .8 million or$.11 per share posted the yearprior.

For the year, revenues grew 13.3 percent to $237 million, and gross marginincreased almost four points as a percentage of sales. Expenses, excluding thespecial fourth quarter charges, increased 23 percent to $78.6 million or 33percent of sales, up three points. Net income tumbled to $3.4 million or $.46per share from $6.2 million or $.84 per share earned the previous year.

The $8.6 million special charge was related to a fourth quarter manufacturingrestructuring program that was developed to reduce manufacturing costs and toincrease profitability in the long-term, according to the company.

The end of BJICA's 1999 fiscal year was marked by news that Ben & Jerry'shad received various indications of outside interest to acquire the company atprices significantly higher than current BJICA stock price. Ben & Jerry'sresponded that it intends to remain an independent Vermont-based company focusedon emphasizing product quality, economic reward and a commitment to thecommunity, and it intends to continue to contribute 7.5 percent of profits tocharity. Furthermore, the company's board has not made any decision with respectto any offers of acquisition.