GEORGIA Pacific, a competitor of the Jefferson Smurfit Group's US associate Jefferson Smurfit Corporation, has announced a three year plan to cut costs and boost profits. The group which reported earnings per share of $11.29 for 1996 is to offer early retirement to 1,400 employees with further manpower reductions to follow.
The group is aiming to boost pre tax earnings by $400 million or $2.65 per share by the end of 1988, mainly through a reduction in overhead and administrative expenses. Group profits for the second quarter will be hit by a charge to cover the restructuring programme. The benefits of the "aggressive"
programme are expected to begin to flow to the Georgia Pacific profit line in 1997, according to industry analyst Mr Richard Schneider from Paine Webber.
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