Taking over the reins, temporarily, from Mendes is board member Rick Wolford, former CEO of San Francisco's Del Monte Foods.
"He's very well respected by bankers, and not afraid to tell them the unvarnished truth" about what has been going on inside the company, said Ramey in an interview Friday. Ramey covers Diamond Foods and is more bullish on the company's prospects than many other analysts in the wake of last week's bombshells.
"There's nothing broken with the business," he said, pointing to the otherwise strong sales and profit performance of the company. Pop Secret and Kettle, he believes, are now worth far more than the $800 million Mendes paid for them.
As for the hole left by the hard-charging Mendes, Ramey added, "no doubt he was critical, in many ways a visionary. He had some flaws. He may have been too aggressive, too ambitious - with the benefit of hindsight. But there's no reason why someone else can't step into the role and do just as good a job."
The only comment I got from Diamond Foods was a statement from Wolford from the public relations firms Sard Verbinnen, "I look forward to contributing to Diamond's progress during this period of transition and, importantly, to continuing to build a successful future."
Good Post! Over aggressive management, especially to pick up Pringles (do what ever it takes). This is the kind of management I would want running my company.Everything was being included just in the wrong quarters.
as i said teh 800 million for the chips and popcorn, which accounts for app. 50 million in sales , means there is still a nits business that generates about 800 million in revenues and that would fetch as much as 1- 1.5 billion .. so u are talking baout 1.3 - 1.8 billion net in abreak up of 55- 70 dollars.. discount it all u want for its so called problems ahead and u still have agreat opurrtunity!
Most of Diamond’s 1,700 walnut growers are family farmers with orchards in the heartland of California’s Central Valley. Their association with Diamond guarantees a market for their crops and provides the company with high quality walnuts — the “hero” nut of the Diamond and Emerald product lines. Diamond provides information and resources to help growers to produce the best nuts in the world.
Approximately 50 percent of the California walnut crop passes through the doors of the Stockton plant each year, the largest and most technologically advanced such plant in the world.
Diamond facilities in Alabama and Indiana process Brazil nuts from the Amazon, along with top-quality in-the-shell walnuts and almonds from California, hazelnuts from Oregon, and pecans from the southeastern United States. In addition, Diamond has four seasonal receiving facilities in California: Live Oak, Linden, Modesto and Visalia.
The Audit Committee has concluded that the Company's financial statements for the fiscal years 2010 and 2011 will need to be restated. Over the course of the last three months, the Audit Committee has carefully reviewed the accounting treatment of certain payments to walnut growers. The Audit Committee has concluded that a "continuity" payment made to growers in August 2010 of approximately $20 million and a "momentum" payment made to growers in September 2011 of approximately $60 million were not accounted for in the correct periods, and the Audit Committee identified material weaknesses in the Company's internal control over financial reporting.
"After an extensive and thorough investigation, the Audit Committee concluded that the Company's internal controls were inadequate and that certain grower payments for the 2011 and 2010 crops were not accounted for in the correct periods. As a result, the Company will restate its fiscal years 2010 and 2011 financial statements," said Robert Zollars, Diamond Foods' Chairman. "The Board takes the Company's control and the integrity of its financial statements very seriously, and we are moving aggressively to implement corrective measures, including changes to the Company's leadership."
"I look forward to working with the management team and the terrific employees at Diamond and will be focused on moving the business forward, further driving Diamond's strong brands and helping to find a permanent chief executive," said Rick Wolford, Acting President and Chief Executive Officer.
Diamond is working diligently to complete financial restatements for the affected periods and will file all required reports with the U.S. Securities and Exchange Commission as soon as possible. While the timing of the restatement is difficult to predict at this time, the Company will endeavor to provide updates on timing and other material developments.