Martin Orlowsky Retiring; Former UST CEO Murray Kessler Takes Over
Lorillard announced today that 11-year CEO Martin Orlowsky will be retiring, effective September 13, 2010. Mr. Orlowsky will be succeeded by former UST CEO Murray Kessler – who spent six months at Altria in 2009 assisting the company with the UST integration. Mr. Orlowsky will stay on for two years as a consultant to Lorillard’s Board of Directors.
Mr. Kessler Brings Record of Cost-Cutting and Smokeless Expertise
We spent a lot of time with Mr. Kessler during his tenure at UST. We believe that Mr. Kessler brings a strong track record of cost discipline. One of his last initiatives within UST, before purchase by Altria, was Project Momentum – which significantly boosted margins (which were already high). Additionally, Mr. Kessler clearly brings expertise on how to run a smokeless tobacco business –where Lorillard lacks exposure (and is likely to focus on expanding into this area).
The above info was provided by UBS analyst Nik Modi.
What are your thoughts?
Is this a good move?
Is it good for Lorillard?
Do you agree with Nik Modi’s thoughts?