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Danone cuts 900 jobs after flat profits

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PARIS, Feb 19 AFP

February 19 2013, 8:50PM

French food industry group Danone has reported a flat net profit for 2012 of 1.81 billion euros ($A2.36 billion) and says it will cut about 900 jobs in management and administration across Europe to reduce costs.

The cuts represent 10 per cent of managerial staff in Europe with the aim of saving 200 million euros over two years and boosting flagging sales in Europe, the company says.

The share price of the company, which now generates 60 per cent of its sales outside Europe, rose by 4.54 per cent in early trading.

Sales in Europe fell by 3 per cent last year compared to 2011 but outside Europe they grew by an average of 10 per cent.

The company said that the job cuts would be achieved by relocation within the company and through voluntary departures.