10:41 AM EDT, 08/06/2024 (MT Newswires) -- WK Kellogg (KLG) shares fell 1.7% in recent Tuesday trading after the company reported lower net sales for fiscal Q2 and announced a plan to fully close its Omaha, Nebraska plant by the end of 2026.

The company reported fiscal Q2 earnings Tuesday of $0.36 per diluted share, up from $0.32 a year earlier.

Capital IQ estimates weren't available for comparison.

Net sales for the quarter ended June 29 were $672 million, down from $700 million a year earlier.

Two analysts surveyed by Capital IQ expected $671 million.

The company said it now expects 2024 adjusted net sales to be at the lower end of the previously provided guidance range of a 1% drop to a 1% increase.

WK Kellogg also said its board has approved a reorganization plan that will see the company consolidating its manufacturing network by closing its plant in Omaha, Nebraska, with a phased reduction in production starting in late 2025 and full closure by the end of 2026.

The company added that it plans to scale back production at its facility in Memphis, Tennessee, starting in late 2025.

These actions, including estimated headcount additions at plants where the company plans to increase production, would lead to roughly 550 job cuts, WK Kellogg said.

The company said impacted employees have been informed of the reorganization plan, which remains subject to the satisfaction of certain collective bargaining obligations.

The actions under the plan are anticipated to be substantially completed by the end of fiscal year 2026, the company said.

Price: 17.09, Change: -0.30, Percent Change: -1.73