DIMON's CLAUDE OWEN TO RETIRE AS CHAIRMAN AND CEO
BRIAN HARKER NAMED NEW CEO
JOE LANIER APPOINTED NON-EXECUTIVE CHAIRMAN
DANVILLE, VA – DIMON Incorporated
(NYSE: DMN) today announced that Claude B. Owen, Jr., has decided to retire
as Chairman and Chief Executive Officer. Mr. Owen will be succeeded as
CEO by Brian J. Harker, the company's current President and Chief Operating
Officer. The Board of Directors also named current board member Joseph
L. Lanier, Jr., Chairman and CEO of Dan River Incorporated, to the new
position of Non-Executive Chairman.
Mr. Harker, age 48, has been integrally involved
in the planning and implementation of initiatives being undertaken by
DIMON to address its long-term strategic position, including its Intabex
litigation, resource rationalization, the de-leveraging of the company's
balance sheet, and operating strategies to build upon and further enhance
customer relationships.
Prior to becoming President and COO earlier
this year, Mr. Harker served DIMON and one of its predecessor companies
in several senior executive positions where he acquired additional operational
and managerial skills. In 1990, Mr. Harker joined Monk-Austin, Inc., a
predecessor company, as Vice President in charge of evaluating the company's
worldwide operations. He became Senior Vice President-Director of International
Operations for Monk-Austin in 1991. He served in that capacity until 1995
when Monk-Austin merged with Dibrell Brothers, Incorporated to form DIMON.
At that time, Mr. Harker became Senior Vice President of the Company's
tobacco division. In 1996, DIMON promoted Mr. Harker to the position of
Executive Vice President and Chief Financial Officer.
In announcing his retirement, Mr. Owen stated,
"Over the course of the last several months, DIMON has faced a number
of key business challenges which its management has met head-on with appropriate
actions. As we identified and executed those initiatives that will keep
DIMON a strong competitor well into the next century, I began contemplating
retirement. I informed the Board of my intention to retire this year,
which, based on my age and years of service, is the first year I am eligible
to do so."
Mr. Owen added, "The Board and
management of DIMON have worked closely together to assure that there
is a strong management team in place, with an appropriate successor to
assume overall responsibility for the company's future as a leader in
the leaf tobacco industry. The promotion of Brian Harker is confirmation
of that process. He brings both the leadership and experience necessary
to execute DIMON's business strategy and build on its inherent strengths.
The combination of Brian Harker and Joe Lanier affords DIMON knowledgeable
and highly qualified operating leadership and strong board oversight."
Mr. Harker stated, "Management
has been both proactive and flexible in adapting our near-term operating
strategy to streamline the company to align it with current market conditions
and also to position it for future growth. Furthermore, DIMON has numerous
and substantial core strengths around which to fulfill its business potential.
Specifically, these core strengths are an experienced and focused management
team, worldwide flue-cured, burley, oriental, and dark-leaf operations,
a diversified global customer base, and strategic partnerships with several
manufacturers.
"While the business environment
for DIMON and others in the leaf tobacco industry has been challenging,
we are confident that our core strengths provide us important competitive
platforms on which to build. Our focus on customer relationship development
and resource rationalization are the proper elements around which to forge
our long-term business strategy," Mr. Harker concluded.
Mr. Lanier, who joined the Dibrell Brothers
board in 1993 and has continued to serve on the successor board, said,
"The Board of Directors is grateful to Claude Owen for his contributions
to DIMON and his leadership since its inception in 1995. The Board is
fully committed to the strong management team that is in place and to
Brian Harker as DIMON's new Chief Executive Officer. The priority of the
Board and the management of DIMON is to capitalize on the Company's core
strengths and, in turn, create attractive long-term growth potential for
DIMON's shareholders."
Mr. Owen, age 53, had served as DIMON's Chairman
and Chief Executive Officer since the Company's formation in 1995. Prior
to that he was CEO of the DIMON predecessor, Dibrell Brothers, from 1989
to 1995. He joined Dibrell Brothers in 1971.
Headquartered in Danville, Virginia, DIMON
Incorporated is an international company engaged in purchasing, processing,
storing and selling leaf tobacco. With sales in excess of $2 billion in
fiscal year 1998, DIMON is the second largest leaf dealer in the world.
For more information on DIMON, visit the Company's website at www.dimon.com.