Will Wrigley's being willing to try and sink it's teeth into a candy bar again? I'm talking (HSY).
Wrigley profit, sales rise; CEO named
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By Dan Burrows, MarketWatch
Last Update: 12:54 PM ET Oct 23, 2006
NEW YORK (MarketWatch) -- Chewing gum, candy and mint maker Wm. Wrigley Jr. Co. said Monday it named William Perez president and chief executive, succeeding Bill Wrigley Jr., who was elected as full-time executive chairman.
The move marks the first time in Wrigley's history that a non-family member will serve as its CEO.
posted higher third-quarter income, helped by sales of new products such as LifeSavers Orange Mints and Fruit Splosions.
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Shares of Wrigley added as much as 15.7% to $54.20 at one point in the session.
Prudential Equity Group analyst John McMillin said that "an executive of Perez's stature -- with knowledge of the consumer markets and dealing with family-controlled companies -- is tough to find."
"Perez also has acquisition skills that Wrigley may have been lacking, and his arrival may signal more deals and more openness towards the investment community," the analyst wrote in a note to clients.
Perez was most recently president and CEO of Nike Inc. (NKE :
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NKE89.87, +1.27, +1.4% ) , a position he held from 2004 until earlier this year, when he was forced to step down after clashing with Philip Knight, the footwear company's co-founder and chairman. Prior to Nike, Perez was president and CEO of privately held SC Johnson. See archived story.
Bill Wrigley Jr. had been serving as chairman, president and CEO. His new full-time role of executive chairman is in addition to his continuing responsibilities as chairman.
"The appointment of Bill Perez to be the first person to serve as president and CEO ... from outside the family is indeed an historic and important milestone," said Bill Wrigley Jr. in a news release.
For the most recent quarter, the Chicago-based company said profit rose to $148 million, or 53 cents a share, from $129.7 million, or 46 cents, a year ago. Excluding restructuring charges and stock-option expense, earnings would have been 57 cents a share.
Sales for the three months ended Sept. 30 grew about 11%, advancing to $1.18 billion from $1.06 billion a year ago, helped by greater shipments of both gum and non-gum products. Currency exchange added two percentage points to sales growth, Wrigley said.
Analysts polled by Thomson First Call had, on average, forecast earnings of 51 cents a share on sales of $1.15 billion.
Wrigley said it saw solid sales growth across it portfolio of brands and throughout its global operations.
"Even in geographies where we're seeing stepped-up new product and promotional activities by competitors, we're seeing excellent performance and category growth," said Ralph Scozzafava, head of worldwide commercial operations, in a news release. End of Story
Dan Burrows is a reporter for MarketWatch in New York.
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