Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, July 18, 1995 TAG: 9507180065
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: Associated Press
DATELINE: PHILADELPHIA LENGTH: Medium
Scott grew into a global giant with manufacturing facilities in 22 countries and sales in 80 countries. But after losing $277 million in 1993, the board of directors wanted change.
In the words of Albert J. Dunlap, the board's hired gun, Scott was ``a stodgy old paper company that had lost its way, that was almost comatose.''
Since Dunlap took over in April 1994, Scott has eliminated 10,500 jobs, cut debt by $1.7 billion, boosted stock value by 150 percent and moved the corporate headquarters to Boca Raton, Fla. As the coup de grace, Scott and Kimberly-Clark Corp. on Monday announced a $6.8 billion merger agreement that will end Scott's independence.
The Scott brothers made their mark by producing and marketing toilet tissue, at first under private labels because of Victorian tastes and then with the Waldorf brand, which still has a presence on store shelves. In 1907, Scott invented the paper towel, according to a company history.
Scott has been a pioneer in high-speed, high-productivity papermaking and in designing soft, absorbent towels with perforations and towels that retained strength when wet. But more recently, it has been criticized for not moving quickly enough to meet new environmental standards.
It also was known for years as one of the most strike-prone paper companies. But Dunlap's predecessor, Philip E. Lippincott, brought labor peace with joint labor-management advisory committees that sought to ease problems before they reached the bargaining table.
During the past year, Scott has entered China, Indonesia and India, expanded in Mexico and gone ahead with a state-of-the-art factory in Owensboro, Ky.
``I am proud of the improvements at Scott and the tremendous value which has been created for Scott's shareholders under my leadership,'' Dunlap said.
by CNB