UPDATE 1-Fortune Brands to cut jobs in restructuring
(Adds details of restructuring, charges)
ATLANTA, Jan 6 (Reuters) - Fortune Brands Inc (FO.N) expects pretax charges of $100 million tied to workforce reductions and other cost cuts, the company said in a regulatory filing on Tuesday.
The company said the pretax charges would include about $30 million for job cuts, about $20 million tied to closing or consolidating plants, and about $50 million in noncash charges to write down buildings, equipment and other assets it is disposing of.
The maker of consumer products that include cabinets, doors, windows, and Moen faucets said in the U.S. Securities and Exchange Commission filing that it expected the restructuring, begun in the fourth quarter, to be completed in the 2009 fiscal year.
The company's fiscal year corresponds with the calendar year, so fiscal 2009 began on Jan. 1.
The filing did not detail how many jobs would be cut or which plants would be closed or consolidated, but it said the charges were predominantly related to its home and hardware segment. The U.S. recession has caused consumers to cut back on remodeling projects.
A spokesman said the company would provide more information about its most recent actions when its fourth quarter results are released later this month.
The restructuring moves also include elimination of production shifts and exit of certain low-return product offerings, the filing said.
Fortune Brands, whose products also include Jim Beam bourbon and Titleist golf balls, said it expects the cost-cutting moves to result in savings that have a payback of three years or less. (Reporting by Karen Jacobs; editing by Carol Bishopric)
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