OK, I have this from a friend who works there in Cincy and he tells me that Durk was all over the financial statements for years. So he was very involved in the numbers so my take is he has lost confidence in Mike Sims the CFO and it seems like ever since this guy has taken over, things have gone down hill.
First they miss their numbers that they reported and then there guidance was taken back saying "sure we are going to make our profit numbers we said earlier in the year even though our revenue is down". How easily we forget this guy is in charge of finance and I hear their top people have jumped ship. So now they can't produce a forecast, well its pretty obvious there is reason this guys was not the CFO before at least the prior CFO made things happen.
So now Durk who was very involved with the numbers says he has no confidence. I guess the proof is in the performance and missed guidance. Not sure if anyone has seen the email Durk sent which is on the SEC website but it says these guys are a train wreck in laymen's terms.
EX-17.1 2 dex171.htm E-MAIL COMMUNICATION FROM DURK I. JAGER, DATED NOVEMBER 19, 2010
E-mail Communication Dated November 19, 2010
Dear Independent Directors:
This is to confirm that I have resigned from the Board of Directors of Chiquita Brands International, effective immediately.
The Company faces declining revenues, deteriorating profits, and a severe drop in its stock price. I have lost the confidence that we have the strategies and plans that can reverse this situation. Chiquita also lacks the capabilities to address basic operational requirements for a sound business.
The fact that Management did not want or could not respond to a request for a realistic 2011 forecast six weeks prior to the start of the new fiscal year is simply one such illustration.
I have enjoyed interacting with each of you, and have the greatest respect for your dedication to the interest of Chiquita and its stakeholders.
The School of "Presidents of SPECIAL PROJECTS."
Here's the gist of it. FA was put on as the President of Special Projects when he was on his way out of the company and it is a well know fact that he was pushed out of P&G. So now the President of Europe Michel Loeb is following in FA's foot steps at P&G. Friends say the BOD decided on firing the European President right after their meeting in Switzerland (June 2010), but did not tell the guy until late 2010 because they wanted to find a replacement.
So now you have this mgmt team or whatever they call themselves "OPEs" Overly Paid Executives who cannot seem to pull things together, but have only known how to bask in the splendor of a high Euro.
Mike Sims is the CFO or so he is called, only time will tell what legacy he will leave, and so far he has not left a good one. Hear his FP&A senior team have all left as he is a bit difficult to work with and and never listens. Well most CFO's know when to push back on a CEO, ofcourse now if you are just so happy to finally be a CFO that you sit there and agree all the time well then the Legacy you leave is "Good Luck Trying to Get a JOB" once you are placed on "SPECIAL PROJECTS."
Maybe history will repeat itself and FA will once again be "Chairman" of the SPECIAL PROJECTS TEAM with his friends the the Overly Paid Executives.
So I wrote this because as I heard Durk was totally into the details and he finally said ENOUGH is ENOUGH.....
The risk is just not worth it, stripes just are not in fashion anymore.
The board shills from Cincy can't spin this disaster. The proof is in the stock price and inept management.
As long Aguire is allowed to loot the company another BK filing becomes likely sooner rather than later.
If the company can't estimate 2011 revenues on what basis do the analysts project a stock price for this dog?
As the research reports are on hi-gloss paper they are useless even as a toilet paper substitute.
This is a damning indictment of the company and its lack of internal controls.
First off, I read the letter from Jager when it was filed with the SEC, and I was surprised. You don't usually see this kind of disagreement taken public, so he either feels strongly about his opinion or has lost his marbles. Or both. Writing tihs email doesn't make him wrong or right, but it is obviously designed to make people take notice. We did.
In that Jager stepped down as opposed to our seeing an announced management change suggests that the remainder of the board did not agree with him. It doesn't make them right, either. But, the majority rules and clearly they did not get behind Jager.
As a shareholder, I am never pleased when guidance is missed. However, in this instance, it seems like it was for reasons mostly beyond the control of management. That is, a company cannot dictate market conditions, market prices, or foreign exchange rates. I would say that they were overly optimistic that they could turn the corner on trends, so I will fault them with that. I am also displeased with the erosion in Fresh Express sales, although management does seem to have a reasonable plan for reviving sales. If the new wash process combined with the purported loss in margin that the grocers experience with private label do not result in regained sales, I will reconsider. I think we should know in no more than 3 quarters.
I am not inclined to believe things on anonymous message boards that begin with "I hear" or someone "tells me". Either you have facts, or you don't. If you actually have a contact inside CQB who has told you about what Durk Jager said or did internal to the company, he is guilty of passing along insider information. If that is so, then I guess I would question his judgement and discount anything he asserts. If others prefer to believe, then by all means, do so.
I do find it interesting how most, if not all of the naysayers on this message board had so many negative things to say about Durk Jager, and claimed that Aguirre was his puppet. I think we had the full choir singing that tune. Now that he has resigned, all of the sudden Jager was a man with a head for figures who disliked management and demanded results. You can't have it both ways, guys. If Aguirre or Sims were his puppets, he would have fired them instead of resign himself. And if he was a bad apple, he can't be a good apple now that he is gone.
Take this as you like. I am not trying to sugar coat Jager's departure. I find it worth noticing, and would like to know more about what is really happening inside CQB. But, I am continually annoyed with those who cannot have an intellectually honest conversation here.
FA was not Dirk's puppet...rather the opposite...FA could do whatever because Dirk let him and backed him. Everyone else on the Board are spineless jellyfish so they never opposed anything. Obviously..trouble in Paradise. And why blame it all on Sims...he is just FA's puppet...along with everyone else on the Management team.
Your post was excellent. I totally agree. IMHO, believe Durk may had other issues that shareholders are unaware of.
If in fact he did make those comments, then mangement needs to address them publicaly.
Mangement did warn before fore the qtr. that it would be a difficult qtr. can't blame them for a crappy European & US economy.
Just holding on to my few thousand shares that have a basis of $6.75.
AHH DUH!! It's FA..not just Mike Sims..remember FA put Mike in that spot after firing Jeff cause he thought he could have better control over Mike...It's FA..Undercover Boss that needs to be dumped ASAP!!!