Hormel Foods will close plant in Turlock

Hormel Foods will close plant in Turlock

Hormel Foods Corporation said yesterday that it plans to close its Turlock, California plant by October 29, 2010. Valley Fresh canned meats are produced at this facility.
 
Affected employees will receive severance pay and may have the opportunity to work at one of four other Hormel Foods facilities in California. A write-down in assets and employee related costs will result in a one-time charge to fiscal 2010 second quarter earnings per share of approximately five cents.
 
This decision was a difficult one to make because of its impact on companies valued employees at this location. The manufacture of Valley Fresh canned products will be moved to another facility which will provide greater purchasing and distribution efficiencies, said Mike Devine, Vice President of Grocery Products Operations.
 
Impact of the New Health Care Laws
 
The Company’s fiscal second quarter will also be impacted by another one-time charge of approximately five cents per share, resulting from the recently enacted Patient Protection and Affordable Care Act, including modifications made in the Health Care and Education Reconciliation Act of 2010. This charge is due primarily to a reduction in the value of the company’s deferred tax asset as a result of a change to the tax treatment of Medicare Part D reimbursements.

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