Mattel Taps Former Sprint CFO in Executive Revamp
October 03 2017 - 7:15PM
Dow Jones News
By Ezequiel Minaya and Tatyana Shumsky
Troubled toy maker Mattel Inc. announced an overhaul of its top
ranks Tuesday with a roster of industry outsiders -- including a
new financial chief.
The moves come as recently named chief executive Margo
Georgiadis attempts to turnaround a company that has stumbled to
keep pace in the digital arena.
Mattel said Joseph Euteneuer, former CFO at Sprint Corp., has
taken over for long-serving financial head Kevin Farr, who spent
about 17 years in the role.
"He has been instrumental in leading companies in a variety of
industries through times of transformation and turnaround, which
will be invaluable for Mattel," said Ms. Georgiadis in a statement.
Ms. Georgiadis, a former executive for Alphabet Inc.'s Google, has
been with Mattel since February.
Mattel didn't immediately respond to a request for comment.
Mr. Euteneuer served as Sprint's CFO for a little more than four
years, leaving the role in August 2015. He became co-CEO and CFO
for the Americas of Rivada Networks, a Virginia-based spectrum
trading company last spring. A company spokesman said Mr. Euteneuer
will remain on Rivada's board.
Mr. Euteneuer also held CFO roles at two companies before their
mergers, Qwest Communications before its tie-up with CenturyLink
Inc., and XM Satellite Radio before its merger with Sirius.
He might have a steep learning curve at Mattel. All of Mr.
Euteneuer's noteworthy experience comes from the telecom industry,
which is a different business model to a consumer product company
like Mattel, said Linda Bolton Weiser, senior analyst at D.A.
Davidson & Co.
"We know that Mattel is increasingly involved with digitally
communicating with the consumer, but I would still say there's a
big difference between the business of Sprint and the business of
Mattel," Ms. Bolton Weiser said.
Mattel posted a net loss of $56.1 million for the three months
ended June 30, a steeper loss than the $19.1 million the company
lost in the same period of 2016. The company also said it would cut
its dividend -- beginning in the third quarter -- by more than half
aiming to free up funds to modernize its brands for the digital
world and expand in emerging markets.
Ms. Bolton Weiser forecasts that Mattel will have a weak third
quarter, and round out the year with earnings per share of 47
cents.
"I'm not seeing why someone would be overly eager to come into
that type of situation," she said.
Separately, Mattel announced Tuesday the filling of various
high-ranking roles, including Sven Gerjets as chief technology
officer, Amy Thompson as chief people officer and Nancy Elder as
chief communication officer. None have previously worked in the toy
industry.
"One of the keys to our success is attracting forward-thinking
leaders who believe in our vision and bring a fresh perspective and
strong skill set to Mattel," Ms. Georgiadis said in the
statement.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com and Tatyana
Shumsky at tatyana.shumsky@wsj.com
(END) Dow Jones Newswires
October 03, 2017 19:00 ET (23:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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