Reynolds American CEO to Leave Role at Year's End
20 October 2016 - 12:20AM
Dow Jones News
Reynolds American Inc. said Susan Cameron will leave her role as
chief executive at the end of the year and be replaced by Debra
Crew, who currently serves as president of the company's largest
tobacco subsidiary.
The move comes as the company reported revenue and earnings
growth for the latest quarter that fell short of Wall Street's
expectations Wednesday.
Ms. Crew will take over the CEO role on Jan. 1. The transition
has been anticipated since earlier this year when Ms. Cameron's
two-year contract was extended by Reynolds's board through April
2017.
Ms. Crew, a former PepsiCo Inc. executive, joined the U.S.'s
second-largest tobacco company in 2014 as president of its R.J.
Reynolds subsidiary.
Ms. Cameron, who will serve as executive chairman until May
2017, at which time she is expected to become the nonexecutive
chairman, said in a statement that Ms. Crew had "quickly mastered
the details and dynamics of our industry" and her 20 years of
experience in the consumer products industry made her "the ideal
fit" to lead the company.
The leadership transition follows a transformational period at
Reynolds. Ms. Cameron, who was the company's first chief executive
from 2004 until she retired in 2011, returned to the company in
2014 to manage its $25 billion takeover and integration of
Lorillard Inc. The deal closed about a year later, and Reynolds has
used Lorillard's leading brand, Newport, to boost sales and profits
over the past year.
In the latest period, total cigarette volume for R.J. Reynolds
Tobacco products fell 2.5% to 20.5 billion in its latest period, as
0.9% growth at the Newport brand, the nation's top menthol
cigarette, wasn't enough to offset a 3.7% decline in Camel and a
4.9% decline in Pall Mall. Company wide, volumes fell 1.5%.
Reynolds had benefited recently from its Lorillard acquisition.
The companies hoped a combined company would be better able to
compete with industry leader and Marlboro owner Altria Group
Inc.
Through the deal, Reynolds, maker of Camel and Pall Mall brands,
folded in Newport. In September the company said noted smoker John
Boehner, the former House speaker, joined the company's board as it
faces pressure over menthol cigarettes.
Over all for the September quarter, Reynolds posted earnings of
$861 billion, or 60 cents a share, compared with $657 billion, or
46 a share, a year ago. Excluding items, the company earned 61
cents a share. Analysts, polled by Thomson Reuters, expected 65
cents a share.
Revenue rose 1.4% to $3.2 billion. Analysts expected $3.31
billion.
Reynolds American shares fell 0.6% to $47 in light premarket
trading. The stock has fallen 10% in the past three months.
Write to Joshua Jamerson at joshua.jamerson@wsj.com and Tripp
Mickle at Tripp.Mickle@wsj.com
(END) Dow Jones Newswires
October 19, 2016 09:05 ET (13:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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