June 8, 2004

Arla Foods First-Half Profit Drops 66%
 

Arla Foods U.K. Plc, a British dairy company created last year by a merger between Express Dairies Plc and the U.K. operations of Denmark's Arla Foods AmbA, said first- half profit fell 66 percent on costs for cutting jobs and trimming the value of assets on its books.

Net income declined to 1.3 million pounds ($2.4 million), or 20 pence a share, in the six months ended March 31 from 3.8 million pounds, or 1.3 pence a share, a year earlier, the Leicester, England-based company said in a Regulatory News Service statement.

Arla Foods expects the merger to lead to annual pretax cost savings of more than 20 million pounds within three years of its completion, which came in October. The company has already announced the closure of a dairy and glass bottling plant and the elimination of headquarter jobs. Arla Foods in March sold its chilled distribution business to Corby Chilled Distribution Ltd.

The company also said its Express Dairies unit has agreed to deliver packages and heavier letters for TNT Mail.

Arla plans to pay an interim dividend of 60 pence a share.