- Greencore lowered its expectations for profit and adjusted earnings per share for the full year 2018.

Adjusted EPS was lowered to a range of 14.7p to 15.7p, below current market expectations of 15.7p to 16.6p.

The subdued financial outlook for the current fiscal year comes as the firm warned underutilised original sites in the first half of the year, combined with the timing of new business contributions, and the current GBP/USD exchange rate, will reduce the expected rate of US profit growth this year.

The firm added that while the acquisition of Peacock Foods in December 2016 greatly enhanced financial performance of Greencore US, it is restructuring its US network to address 'continued low capacity utilisation at some of the original Greencore US sites'.

Its facility in Rhode Island - representing 4% of the group's US manufacturing footprint and 2% of its pro forma revenue in FY17 - will cease current fresh production from 25 March 2018. This is expected to address the operating losses of the site that have continued into 2018.

Its facility in Jacksonville, will be repurposed following the loss of a supply contract but is expected to show increased volumes and site utilisation from the fourth quarter of 2018 driven by business wins.

In site in Minneapolis was said to have improved utilisation steadily through 2018.

The group also implemented a new US leadership model and hired new senior personnel to 'drive near term performance and to exploit its growth agenda.'

The one off cash costs of resetting the US network and the management restructure are anticipated to be approximately £3m.

At 9:55am: [LON:GNC] Greencore Group PLC share price was -43.02p at 139.58p

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