Date: September 29, 2004
Source: News Room
Allied Waste Industries has named Charles Cotros, a former chief executive of SYSCO Corp. and a member of Allied's board since July, to succeed Tom Van Weelden as chairman and chief executive. Van Weelden will remain with Allied as president. In September, Allied cut its 2004 earnings forecasts for the second time in three months, and said it expects to spend $40 million to reduce long-term maintenance costs. The company also noted that its sales growth was coming primarily from lower-margin businesses rather than the more profitable landfill business.
More information: www.alliedwaste.com.
Details
In a move that seems to be a response by Allied's Board of Directors to growing pressure from company stakeholders, the Board named one of its own: Charles H. Cotros as Chairman & CEO. This action will ostensibly free up Tom Van Weelden and Don Slager to focus on ever-important day to day operations. In a conference call today, Mr. Cotros stated that his objective will be to focus the company on growth through acquisition and vertical integration with the idea of moving the company's debt to investment grade status such as was the case at SYSCO. He stated that he is also looking to "streamline" management, which of course means that heads will probably roll. Mr. Cotros drew parallels between Allied and SYSCO by pointing out that both companies rely on and manage a large fleet of trucks and are customer oriented. He said his first action will be to travel the country and meet with each of the regional vice presidents and learn more about operations at the field
level.
Mr. Cotros was only named to the board on July 23rd. It was only since then and until about two weeks ago that the Board finally decided to elevate his involvement in the management of the enterprise. Having left a comfortable retirement in the mountains of North Carolina, he says that he plans to stay as long as the Board deems that he can add value with his presence there.
Press Release:
ALLIED WASTE NAMES CHARLES H. COTROS CHAIRMAN AND CEO; TOM VAN WEELDEN TO CONTINUE TO SERVE AS PRESIDENT
Scottsdale, AZ - October 4, 2004 Allied Waste Industries, Inc. (NYSE: AW), a leading waste services company, today announced the appointment of Charles H. Cotros as Chairman of the Board of Directors and Chief Executive Officer, succeeding Tom Van Weelden. Mr. Van Weelden will continue to serve as Allied Waste's President, responsible for Sales, Operations and Market Planning and Development, and will remain a member of the Board of Directors. He will report to Mr. Cotros. The appointment of Mr. Cotros, which was unanimously approved by the Company's Board of Directors, is effective immediately.
Mr. Cotros, who has served on Allied Waste's Board of Directors since July, previously served as Chairman and CEO of SYSCO Corporation, the largest foodservice marketing and distribution organization in North America, most recently as its Chairman and CEO, from 2000 to 2002. For their fiscal year 2002, SYSCO reported revenues of more than $23 billion. His distinguished 43-year-long career in the foodservice distribution industry included 28 years with SYSCO.
"Charles Cotros is an outstanding addition to the Allied management team," said Dennis Hendrix, Lead Director of the Allied Waste Board. "This is an appropriate time in the Company's development to add an individual with the leadership and strategic skills demonstrated by Charles during his career at one of America's most successful companies. His leadership skills will complement the operations strengths of Allied's existing management team."
Tom Van Weelden, President of Allied Waste added, "Charles has already contributed his seasoned perspective to the Company in his brief tenure as a Board member. I and the rest of our executive team look forward to working more closely with him as we work to capture the many opportunities available to Allied Waste."
"This is a very exciting time to be joining the senior leadership team at Allied Waste," said Charles Cotros, Chairman and CEO of Allied Waste. "Allied Waste is a fundamentally strong Company in a very stable industry, and I look forward to playing a role with Tom, the rest of our management team and all our employees to take this Company to the next level."
Mr. Cotros began his career in the foodservice industry in 1960 with his family's business, Tri-State General Food Supply. After the company merged with SYSCO in 1974 he served as president of the Memphis operation from 1975 to 1977 and 1982 to 1988. During the 1977 to 1982 interim period, he was president of SYSCO's Jackson, Mississippi operation. Upon returning to Memphis in 1982, he was that operation's chief executive officer while simultaneously serving as chairman of SYSCO companies in Arkansas, Louisiana, Mississippi and Kentucky. Mr. Cotros was elected to SYSCO's board of directors in 1986 and, in 1988, was appointed executive vice president of the corporation and president, foodservice operations. He was elected chief operating officer of SYSCO in 1995 and assumed the additional role of president of the corporation in 1999.
A conference call today, Monday, October 4th at 5:00 p.m. ET to discuss this announcement. To listen to the call, please dial 484-630-4132 approximately 10 minutes prior to the start of the call and ask the operator for the Allied Waste conference call. The call will also be broadcast live over the Internet on the Company's website: www.alliedwaste.com. A replay of the call will be available beginning at 7:00 p.m. ET on October 4 th through 5:00 p.m. ET on October 18 th by dialing 402-220-9834 or accessing their website.
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