UPDATE: Logitech Names Whirlpool President Bracken Darrell As CEO
March 15 2012 - 9:17AM
Dow Jones News
Logitech International SA (LOGN.VX) Thursday named Whirlpool
Corp (WHR) executive Bracken Darrell as its new chief executive
after an eight-month search.
Darrell, who was president at the washing machine makers'
European division, will become chairman at Logitech in April before
taking on the CEO role next January. He will succeed stand-in CEO
Guerrino De Luca who returned from his position as chairman to lead
Logitech last July.
The appointment ends the uncertainty at the top of the
beleagured company which has seen its share price plummet after
posting four profit warnings over the last 12 months.
Darrell, aged 49, will take over responsibility for R&D,
sales, manufacturing, supply chain, IT, human resources and legal
affairs on April 9.
De Luca described Darrell as a "change agent" bringing
innovation to his previous companies which included Procter &
Gamble Co (PG), where he was president of Braun, and also General
Electric Co (GE).
"Bracken brings a passion for keeping the consumer at the heart
of decisions as well as a fresh perspective on our business," De
Luca said.
Analysts express relief that the succession issue had been
settled but noted Darrell was relatively unknown.
His experience in consumer electronics is a plus, said Cyrill
Pluess, an analyst at Kepler Capital Markets.
"Logitech praises him as an innovation driver with a strong
consumer focus and we hope he can deliver as we believe this has
been one of the key missing elements in recent years," said
Pluess.
Logitech, the world's biggest maker of computer peripherals such
as webcams and mice, has seen 57% wiped off the its share price in
the last 12 months, cutting its market capitalization to CHF1.4
billion.
In January it lowered its full-year sales and operating outlook
for fiscal 2012 ending March 31. It had previously reduced its
expectations in July and September last year, and also revised its
numbers again before releasing fiscal 2011 figures in March.
Logitech's troubles stem from the popularity of tablet
computers, which don't use as many of the traditional computer
peripherals produced by the company.
The company has launched new tablet-compatible products, such as
keyboards, but still faces problems with falling sales of webcams
and remote controls.
At 1229 GMT, Logitech shares were trading down 1.5% at CHF7.10,
while the benchmark SMI index was 0.1% higher.
-By John Revill, Dow Jones Newswires; +41 43 443 8042 ;
john.revill@dowjones.com