News: Goodman chief takes knife to baking divisio

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Goodman Fielder Limited’s (ASX:GFF) new chief executive has slashed the baking division, writing down the value of assets by $300 million. It’s in response to weak trading in Australia and New Zealand.



Goodman Fielder downgraded its profit guidance of $140 million to $150 million to slightly below this range.



The consumer foods giant approved a number of initiatives earlier in the year to restore profitability, but it hasn’t been enough.



The company is undergoing a strategic review, and an update of how it’s progressing will be given at the end of this month when it releases its full year results.



In the first six months of the 2011 financial year, Goodman Fielder recorded a net profit $95.6 million.