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Sara Lee Announces Business Process Outsourcing Initiative

^{Published on 2008-12-11 08:57:29 - Market Wire}
 

DOWNERS GROVE, Ill.--([ BUSINESS WIRE ])--Sara Lee Corp. (NYSE: SLE) announced its intent to outsource pieces of its North American and European Finance (transaction processing) and Global Information Services (applications development and maintenance) groups, as well as the company's global indirect procurement activities. This effort is an important component of Sara Lee's "Accelerate" initiative, the company's series of global projects designed to drive annualized benefits of $200 – $250 million in the next three years. As a result, approximately 700 positions, including roles currently performed by contractors, would become redundant.

"'Project Accelerate' is designed to improve margins and drive shareholder value as we continue to build the long-term strength of the company," said Brenda Barnes, chairman and chief executive officer, Sara Lee Corp. "In addition to the cost savings, business process outsourcing will help Sara Lee further drive standardization, increase efficiency and provide flexibility."

Sara Lee expects to begin implementation of the initiative in North America in the current fiscal year, and plans to complete global implementation within three years, fully respecting all required consultation procedures in Europe. The company is currently finalizing contract specifics with a third-party supplier.

Forward-Looking Statements

This release contains forward-looking statements regarding Sara Lee's business plans, expected costs savings and operating results. In addition, from time to time, in oral statements and written reports, the corporation discusses its expectations regarding the corporation's future performance by making forward-looking statements preceded by terms such as "expects," "likely" or "believes." These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events and are inherently uncertain. Investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Factors that could cause Sara Lee's actual results to differ from such forward-looking statements include the timeline for the corporation's implementation of each phase of the outsourcing initiative and completion of full implementation, efficiencies realized and cost reductions achieved relative to current projections, changes in the corporation's business and operations during the term of the outsourcing arrangements, results of discussions with employees and employee representatives regarding the anticipated redundancies, and the timing and amount of the incremental costs incurred to implement the initiative.

In addition, the corporation's results may also be affected by general factors, such as economic conditions, political developments, interest and inflation rates, accounting standards, taxes and laws and regulations in markets where the corporation competes. Sara Lee undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

About Sara Lee Corporation

Each and every day, Sara Lee (NYSE: SLE) delights millions of consumers and customers around the world. The company has one of the world's best-loved and leading portfolios with its innovative and trusted food, beverage, household and body care brands, including Ambi Pur, Ball Park, Douwe Egberts, Hillshire Farm, Jimmy Dean, Kiwi, Sanex, Sara Lee and Senseo. Collectively, these brands generate more than $13 billion in annual net sales covering approximately 200 countries. The Sara Lee community consists of 44,000 employees worldwide. Please visit [ www.saralee.com ] for the latest news and in-depth information about Sara Lee and its brands.