by Christopher Freeburn | September 6, 2013 10:14 am
Shares of Green Mountain Coffee Roasters (GMCR) fell more than 3% in Friday morning trading after the company revealed plans to shutter its Toronto factory.
The facility’s closure will mean the loss of 120 jobs. The company will record an “immaterial” one-time charge relating to the shutdown during the current fiscal quarter and will reallocate production to its Montreal plant. Earlier this year, Green Mountain said it would trim 74 support workers from its Toronto and California operations, the Wall Street Journal notes.
Green Mountain indicated that the Toronto plant would be closed by March 5. After production is shifted to its Montreal facility, all of its coffee packs for Keurig brewers will be produced at just eight plants. Green Mountain increased operations at the Montreal plant by about 40% during the current fiscal year.
Last month, Green Mountain was added to Nasdaq OMX Group’s (NDAQ) NASDAQ-100 Index, the NASDAQ-100 Equal Weighted Index and the NASDAQ-100 Ex-Tech Sector Index.
In July, the company said it will launch the Keurig BOLT Carafe Brewing System, a full pot coffee brewer, this fall.
Source URL: http://investorplace.com/2013/09/green-mountain-closes-facility-cuts-jobs/
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