du pont names new leaders - polyester film plant
By BARNABY J.
FEDER is a special report by the New York Times on 1981. This is a digital version of an article from The Times Print Archive, before it begins online publishing in 1996.
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Two executives who started their careers in E. I.
Dupont de Nemor, who was a research chemist 30 years ago, was appointed Owen S today.
Shapiro, 64, retired in May 1 and engaged in private law business. Edward G.
Jefferson, 59, is now president and chief operating officer and will be promoted to president.
Shapiro served as chairman and chief executive, while Richard
The 57-year-old is a senior vice president and colleague of the executive committee and he will enter
Jefferson's current jobMr.
He has been an heir since Mr. Jefferson.
Shapiro appointed him president in January. 1, 1980. Mr.
Last fall, an outside director disclosed the candidate for heckkett.
At a news conference, the two executives said they would continue to advance DuPont's business in life sciences, including the search for a pharmaceutical company and efforts to produce specialty chemicals and plastics with higher profit margins.
The background of advertising Science and the name of Mr.
Mr. Jefferson and
Du Pont's Heckert has returned to the tradition of selecting a CEO with a scientific background. Mr.
Mr. Shapiro, who was appointed chairman and chief executive seven years ago, was promoted through Dupont's legal arm.
Mr. two ads.
Mr. Jefferson and
Heckter claimed that their appointment did not mean that the company was about to make a major strategic change.
"We instinctively feel that it has something to do with the activities of the past 10 years," he said . "
After the announcement, Hector said in an interview.
"We have played an important role in these activities.
"These activities include efforts to adapt to the destructive effects of the energy crisis on corporate oil --
Based on the chemical and plastic business.
In the 1970s, profit margins in major Dupont Industries fell sharply due to overcapacity and the rapid rise in fuel and raw material costs.
More than 70% of the company's business is oil. based.
Analysts want to know if efforts to control costs and increase productivity in traditional business lines (which are basically defensive strategies) have been overemphasized at the expense of areas such as life sciences and Pharma.
Competitors such as Dow Chemical are seen as leading the way in the development of this business.
Those concerns were exacerbated by the company's performance in 1980, when sales rose 9% to $13.
7 billion, but revenue fell 24% to $0. 716 billion, while Dow revenue hit a record high.
However, in a press conference and subsequent separate interviews, the upcoming DuPont leaders expressed confidence in the company's current strategy.
Satisfied with ResearchMr.
Jefferson said that the company is satisfied that through in-house funded research, it has kept up with the development of the main areas of life sciences, a series of industries related to health and medicine.
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A major acquisition was made in this area, the first large-scale acquisition by DuPont since 1972.
In last December, the company bought New England nuclear for about $0. 342 billion.
New England nuclear Corporation develops and sells radioisotope systems for medical research and diagnosis. Mr.
Jefferson will be chairman of DuPont for more than a decade after Lamot DuPont Copeland, the last Dupont family member to hold the position, handing it over to Mr. Dupont
Charles S. , Shapiro's predecessorMcCoy.
Although advertising revenue has only doubled due to the energy crisis, DuPont's sales have tripled over the past decade.
More importantly, the company eventually superimposed its 75 almost autonomous businesses with company planners.
The biggest change, he said, was the establishment of the company's planning department in 1975. Heckert said.
"We know we have to plan more carefully from top to bottom.
The result of the current strategy the plan is that the current strategy emphasizes a steady move towards specialty fibers and specialty plastics and chemicals, dabbling in new areas such as life sciences and electronics, and continuing to invest in improving the productivity of traditional fiber production lines.
In the fourth quarter of 1980, the fiber market improved, and Monsanto announced that it would withdraw from the polyester textile filament business, eliminating the main competitors in the fiber field and convincing DuPont that its patience will be rewarded. Mr.
Jefferson also saw other advantages.
He spoke in a soft English accent, reflecting his birth in London, saying, "we are taking over when DuPont has a strong balance sheet.
He noted that 21% of the company's debtto-
The equity ratio leaves considerable room for borrowing.
"My goal is for us to grow at 1/2 to 2 times, which means I think it's 4 to 5% per year," he said . ".
To achieve this, he estimates, DuPont will need a net return on investment of 7% after inflation. Mr.
Jefferson replaced a high-profile executive. Mr.
Shapiro, who will continue to be a board member, becomes one of the best companies in the country
Because he is willing to speak up on a wide range of issues affecting the business, he is famous for executives. Mr.
Mr. Jefferson and
He said they plan to keep DuPont actively involved in the national policy debate.
The future chairman immigrated from the UK to work at the DuPont factory in Charleston, New York in 1951. Va.
He held several field positions prior to his transfer to headquarters in 1958.
In 1960, he joined the plastics R & D department as a research manager and became an assistant director in 1964.
After working in several departments, he became a director and member of the Executive Committee in 1973.
In 1978, he was responsible for all R & D activities of DuPont. Mr.
Hector joined the company in 1949 at the experimental laboratory here.
In 1954, he became the head of cellophane research, and in 1958, he became the head of the cellophane plant in Clinton, Iowa.
A year later, he became the manager of the Mylar film factory in chesville, Ohio.
He returned to the research department at headquarters in 1963 and subsequently held management positions in the film, plastic, fabric and finish departments.
In 1972, he became a vice president and was elected as a director, senior vice president and member of the executive committee in the second year.
A version of this article appears on page D00001, country edition, March 17, 1981, with the title: DuPont appoints a new leader.