Ladish Co., Wisconsin

Prior to my appointment as Chief Executive Officer, $210 million Ladish defaulted on its  bond interest payment. Had $22 million deficit equity. $18 million negative free cash flow. Six consecutive Operating Losses of $2.2 million each month.

Ladish manufactures forgings in a 2 million square foot plant in Wisconsin and industrial valves and fittings in Kentucky an Arkansas plants. 1,900 employees.

General Electric Aircraft Engine, a $24 million customer, had terminated Ladish.

Its Wisconsin plant’s 9 unions were hostile. Serious delivery delays. High rework and scrap costs. Penal colony management style. No strategic focus and no discipline.

In just three months, achieved a $512,000 operating profit, and $1.3 million the next month from the $2.2 million loss.

Increased annual cash flow $1.4 million, from $5.4 million to $6.7 million.

Raw and work-in-process inventories were reduced by $12 million and 16%.

Closed the California forgings plant for $1.4 million overhead reduction.

Regained General Electric as a customer with $24 million in annual sales.

Successfully brought Company out of Chapter 11 Bankruptcy with a $33 million positive equity.

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Evenflo Company, Ohio

I was appointed Executive Chairman and operated as chief executive officer of this $300 million manufacturer of baby bottles, car seats and strollers.

Established five priorities:

Turnaround the operating losses at its Mexico City subsidiary;

Turnaround the operating losses and low productivity at its Tijuana plant;

Establish a China wood plant to turnaround its money losing gate business;

Improve its poor performing procurement operation;

Develop a better, more effective organization.

Evenflo’s $28 million Mexico City subsidiary registered a $390,000 Operating Loss.

The turnaround was accomplished by:

Reduced salaried headcount from 121 to 68.

Raised bottle prices 15%.

Reduced direct and indirect labor content 5%.

Rationalized customer base.

Reduced SKUs from 250 to 175.

Funded process improvements to improve through-put.

The Mexico City operational restructuring generated an annual Operating Income of  $3 million.

At same time, I was Chief Executive Officer of Springfield Precision Instruments Inc.

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Commemorative Brands Inc., Texas (aka, American Achievement Corp.)

A leading, $160 million manufacturer of Balfour and ArtCarved high school and college class rings, and fine paper diplomas. Four plants, including Mexico. 1,600 employees.

Commemorative Brands registered a prior year Net Loss of $5.8 million prior to my appointment as Chief Executive Officer.  $5.5 million negative free cash flow.

Balfour’s facilities were in Massachusetts and ArtCarved’s were in Texas.  In the first months of the acquisition, Balfour was consolidated into the Texas facility resulting in higher costs.  Delivery delays mounted and quality deteriorated.

Scrap, rework and repair costs were triple normal.  Company was indecisive and drifting.  Working on trivia, not vital priorities.  No cross-functional communication.  Key managers were demoralized.

Results achieved in six months:

Recorded a $1.7 million Operating Profit from a $229,000 loss.

Compared to prior year, increased sales 11%.

Improved gross profit margin from 48.0% to 54.2% of sales.

Reduced working capital 13% from $61 million to $53 million.

Achieved a positive cash flow from operations of $621,000 from a negative $18,000.

Five months after I  became Chief Executive Officer, the owner made an $8.5 million equity investment in the improved company.

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Springfield Precision Instruments Inc., New Jersey

A CIT Group leveraged buy-out. Chief Executive Officer of $20 million in sales Springfield Precision Instruments a thermometer and timer manufacturer selling to the Wal*Mart and Home Depot channel segments.

Turned $276,000 Operating Loss into $1.8 million Operating Profit.

Fixed company by:

Closing USA manufacturing plant and building company owned plant in China,

Repositioning product line into more profitable merchandise resolving fashion and price point issues,

Eliminated contribution margin pricing,

Reduced SKUs by 64%,

Initiated acquisition of China based digital electronics manufacturing company.

At same time, operated as chief executive officer of Evenflo Company and Burke Industries Inc.

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