Midland, MI, Dec. 13--Citing two years of lackluster financial performance, Dow Chemical replaced its president and chief executive with the man who previously led the company.
William S. Stavropoulos, 63, was elected by the board to replace Michael D. Parker. Stavropoulos also will retain his current role as chairman of the world's second largest chemical company.
3The board reached this decision solely in light of the disappointing financial performance of the company over the last eight quarters, with this year's results expected to show no improvement from last year,2 a company spokesperson said. 3No concern of impropriety was reflected in the board's decision.2
Stavropoulos served as president and chief operating officer of Dow beginning in 1993, and as president and chief executive from 1995 to 2000 before stepping down because he had reached age 60. A director since 1990, he became chairman in 2000.
Parker, 56, has spent 34 years with Dow and assumed the role of president and CEO in November 2000. Parker remains a Dow employee and a member of the board.
3The company is in the process of determining the appropriate terms and conditions with respect to Mr. Parker,2 spokesperson Becky Evans said.
In October, Dow posted third quarter profits that more than doubled its year ago results, but the company said it was hindered by higher fuel costs and announced spending cuts to combat the uncertain economy. And the company said results fell below earlier expectations.
Dow said the uncertainty was expected to continue for the rest of the year, though it expected fourth quarter earnings to top year ago results.
The company also has announced several measures to improve earnings and cash flow, such as decreasing 2003 capital spending by 20 percent and other reductions.
