Newell Rubbermaid CEO Resigns
FREEPORT, Ill. (AP) _ Housewares maker Newell Rubbermaid Inc., which warned last week that a slowing of orders would cause fourth-quarter profits to fall well short of estimates, announced the resignation Wednesday of chief executive officer John McDonough.
The company’s board voted to replace McDonough immediately with chairman William Sovey, who served as CEO from 1992-97. Daniel Ferguson, who was CEO from 1965-92 and chairman from 1992-97, returns to the chairman’s post, the company said in a brief statement.
Newell Rubbermaid stock fell 12.5 cents to $19.06 a share in afternoon trading Wednesday on the New York Stock Exchange. Shares have lost about 60 percent of their value in the past year and a half.
The Freeport, Ill.-based company, known as Newell until it acquired Rubbermaid in March 1999, has been struggling to integrate that firm and has missed a series of earnings forecasts since then.
A company spokesman did not immediately return a telephone call seeking comment on the management change.
Newell Rubbermaid makes such housewares as Mirro cookware and Anchor Hocking glassware, home furnishings such as Levolor blinds, juvenile products such as Little Tikes and office products such as Rolodex files. The company had 1999 profits of $95 million on sales of $6.4 billion.