Posted at 11:33 a.m., Thursday, May 3, 2007
ML&P to pay $4.1M as it ends pineapple canning
Advertiser Staff and News Services
Property developer and pineapple grower Maui Land & Pineapple Co. today said in a regulatory filing it will pay about $4.1 million in charges and expenses to discontinue its solid-pack pineapple processing business and cut 120 jobs.On Tuesday, the company said it will consolidate its pineapple operations to focus on fresh fruit sales, and stop processing solid-pack canned pineapple products at its Kahului cannery as of June 30. The move will eliminate 120 jobs, or 27 percent of the company's workforce, although affected workers will be offered jobs in other divisions of the company.
The decision was made due to higher costs of fuel, materials and labor and increased competition.
The costs include $1.6 million for severance payments and $2.5 million for the write-off of fixed assets, materials and supplies, according to a filing with the Securities and Exchange Commission.
The company has not yet determined the effect on its pension and other post-retirement plans.
Shares rose 4 cents to close at $34.38 on the American Stock Exchange. The stock has traded between $29.27 and $39.10 over the past year.
