The Campbell Soup Co, purveyor of iconic brands once immortalized by pop artist Andy Warhol, fell sharply on Wall Street on Friday after the surprise exit of its chief executive officer.
Shares in the company nosedived 12.4 percent to close at US$34.37 after the company announced a strategic rethink and the immediate retirement of chief executive officer Denise Morrison amid a three-year sales slump.
Campbell’s share price has fallen by nearly half since a peak in the middle of 2016.
Morrison’s exit after seven years at the helm of the troubled company thins even further the ranks of women leaders of companies on the S&P 500.
The firm has made progress in stabilizing sales and expanding its portfolio further into snacks, Campbell’s chief financial officer Anthony DiSilvestro said in a statement.
“However, we are not satisfied with our financial results,” he said, citing “external challenges” and other factors, in presenting the company’s latest quarterly results.
The company plans to review all aspects of its strategy and portfolio, DiSilvestro said.
Morrison is to be replaced temporarily by board member Keith McLoughlin.
“Everything is on the table. There is no sacred cow,” McLoughlin said on an investor call.
The company has also pointed to US President Donald Trump’s tariffs on steel and aluminum as a source of woes, driving up the cost of its iconic cans.
The Can Manufacturers Institute, which represents 22,000 workers at manufacturers across the US, believes the tariffs are likely to harm their industry and consumers alike.
There are 119 billion cans made in the US, meaning a US$0.01 tariff would lead to a US$1.1 billion tax on consumers and businesses, the institute said.
In the past few years, the company had attempted to diversify, in particular by acquiring snacks maker Snyder’s-Lance and by developing healthier product lines.
However, it still recorded a US$393 million loss in the first quarter on revenues of US$2.13 billion.
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