Exide Corporation Announces Management Changes
16 October 1998
Exide Corporation Announces Management Changes; Provides Preliminary Estimates of Second Quarter Earnings Results
BLOOMFIELD HILLS, Mich., Oct. 15 -- The Board of Directors of
Exide Corporation announced today that Arthur M. Hawkins, Chairman
and Chief Executive Officer, has resigned his positions. Mr. Hawkins will
serve the Board of Exide as Chairman Emeritus. The Board also announced that
Douglas N. Pearson has resigned as Executive Vice President, President of
North American Operations and member of the Board, but will remain in a
consulting role to assure a smooth transition. The Executive Committee of the
Board, consisting of Arthur R. Taylor and Robert Irwin, will assume day-to-day
responsibilities while a search for successors is conducted.
"We have not been satisfied with our Company's performance and recognize
the need for a new operating team," said Mr. Hawkins. "Exide Corporation
possesses a tremendous business and franchise, made stronger by recent
overseas acquisitions which have broadened our market reach internationally
and provided opportunities for significant cost reductions. We have a solid
management team, sales remain strong across the board and our European
operations are performing well in a difficult marketplace. At the same time,
in order for Exide to achieve the consistent, strong performance that the
Board and its shareholders demand, we need to improve the execution of our
integration plans, address the significant profitability issues that we face
in the United States, and continue to build our financial resources.
"Having led the company through a successful acquisition phase, it is now
time for me to allow new leadership to take Exide to the next stage of its
development," said Mr. Hawkins. "I am confident that this process is best for
our Company, and I am certain that the Board will quickly complete its search
for a new Chief Executive who will enhance our business strategies, strengthen
our management ranks in key areas, and build upon our existing market
leadership."
The Board of Directors has retained an executive search firm to assist in
its search for a Chief Executive Officer. In addition, the Board's newly
formed Nominating Committee, consisting of James T. Watson, Thomas J. Reilly,
Jr. and Mr. Irwin, is working with an outside recruitment firm to fill vacant
seats on the Board of Directors.
The Board stressed that the members of the Executive Committee have
significant industry experience and contacts that will assure that Exide's
business and customer relationships continue uninterrupted through the
management transition. Mr. Irwin is a 30-year veteran of Chrysler
Corporation, where he held a variety of engineering and managerial positions,
including Director of International Manufacturing. Following his tenure at
Chrysler, Mr. Irwin was head of the largest division of Hillenbrand
Industries. During his 35-year career, Mr. Taylor held numerous senior,
financial, manufacturing and management positions at Chrysler and at the
Vertol Division of Boeing Corporation. As Chairman Emeritus, Mr. Hawkins
remains available to assist in the transition.
The Company also announced the appointment of Nicholas Stratigeas, a long-
time Exide executive who most recently served as Executive Vice President in
charge of the Company's Sure Start division, to the position of Executive Vice
President of Sales and Marketing, North America. James Diasio, Vice
President and Controller from 1994 to 1997 who returned to the Company last
month as Chief Financial Officer, was formally elected Executive Vice
President and Chief Financial Officer.
The Board also expressed confidence in the Company's strong management
team in Europe, which generates 60% of the Company's business. This team has
been aggressively working to help the Company realize its business objectives
and integration goals. That team will report directly to the Board through
Mr. Santiago Ramirez, head of European operations.
Exide Corporation also announced today that it expects to report results
for its second fiscal quarter ended September 27, 1998 in the range of $(.05)
to $.10 per share, driven mainly by increased operating expenses, primarily in
the U.S. market, an unfavorable sales mix of lower margin products, and higher
manufacturing costs in the U.S. The Board noted that the Company has taken
action to address these issues, including its recent announcement of a 4%
domestic price increase.
Exide expects to release its full second quarter earnings report on
October 27, 1998.
Exide Corporation is the world's leading manufacturer of automotive and
industrial lead-acid batteries. Sales exceeded $2.2 billion in FY '98 and the
company has operations in 19 countries worldwide. Exide has significant
additional interest in related technologies including battery chargers,
accessories, starters, and alternators. Further information about Exide's
businesses and products are available at http://www.exideworld.com.
Certain statements in this press release may constitute forward-looking
statements under the Securities Litigation Reform Act of 1995. As such, they
involve known and unknown risks, uncertainties and other factors which may
cause the actual results of the Company to be materially different from any
results expressed or implied by such forward-looking statements. These are
enumerated in further detail in the Company's Form 10-K.