Reynolds American Inc.
) board of directors announced the reappointment of Susan M.
Cameron as the Chief Executive Officer (CEO) and President
effective May 1, 2014. In addition, she will continue to serve as
a board member.
Cameron retired from the company in 2011 after serving as CEO
and President for seven years from 2004. She, however, rejoined
the board in Dec 2013.
Cameron's 30 years' experience in Reynolds is expected to
steer the company through the difficult conditions faced by the
tobacco industry. Cigarette shipment volumes are suffering for
the past few quarters due to a general shift of demand from
conventional tobacco consumption to alternative less harmful
Cameron was the main person behind Reynolds' 'total tobacco'
strategic direction. The initiative divides the company's
cigarette brands into three categories - growth brands, support
brands and non-support brands. This strategy was undertaken to
effectively manage brands and generate sufficient financial
resources to invest in product and packaging innovation.
Cameron is replacing Daniel M. Delen, who will continue to
serve the company as a consultant for two years to facilitate a
Reynolds posted mixed results for fourth-quarter fiscal 2013
as earnings lagged the Zacks Consensus Estimate while surpassing
the year-ago results. Revenues, however, missed both year-ago
results as well as the Zacks Consensus Estimate due to
Reynolds has been trying to reduce its reliance on cigarettes
by aggressively diversifying into other tobacco products. The
company recently launched its e-cigarette brand 'Vuse' in
Colorado and plans to increase its distribution nationwide by
Reynolds currently carries a Zacks Rank #4 (Sell). Other
better-ranked stocks in the consumer staples sector that are
performing well at the current level
Diamond Foods Inc
Mondelez International Inc.
). All the stocks carry a Zacks Rank #2 (Buy).
DIAMOND FOODS (DMND): Free Stock Analysis
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REYNOLDS AMER (RAI): Free Stock Analysis
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