down nearly 30% now. wow
Kraft Heinz posts huge loss, slashes dividend and reveals SEC investigation
New York (CNN Business)Kraft Heinz had one of the worst days imaginable Thursday.
The company wrote down the value of its Kraft and Oscar Mayer brands by $15 billion, posted a $12.6 billion loss, cut its dividend by 36% and announced its accounting practices are under investigation by the Securities and Exchange Commission.
Kraft Heinz (KHC) stock plunged as much as 20% in after-hours trading.
Customers weren't the problem: Sales were up about 1% in the fourth quarter. Instead, Kraft Heinz CEO Bernardo Hees blamed the company's operations. Higher-than-expected manufacturing and logistics costs plagued Kraft Heinz. The company anticipated savings from its 2015 merger would continue to help lower costs, but those efficiencies dried up.
"We are overly optimistic on delivering savings that did not materialize by year-end," Hees said on a conference call with investors Thursday. "For that, we take full responsibility. And we have taken steps to ensure this does not happen again by planning process, procedures and organization structure."
more:
http://www.cnn.com/2019/02/21/investing/kraft-heinz-sec-investigation/index.html
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