DETROIT-- Wall Street financier David Stockman, whose Heartland Industrial Partners investment group turned a sleepy Collins & Aikman Corp. into a giant Tier 2 interior supplier, has taken active control of the company as earnings continue to slide.
Stockman takes over as CEO from Jerry Mosingo, who resigned the job on Monday, after slightly more than a year at the helm of the Troy, Mich., company. Stockman continues as Collins & Aikman's chairman.
The switch marks the third CEO for Collins & Aikman since Aug. 1, 2002, when the company replaced dealmaker Tom Evans with Mosingo, whose strengths were based in operational performance.
The shakeup comes as Collins & Aikman's share price is trading in the $2.16 range, near its four-year low. The shares traded in the $20 range early last year. The company is scheduled to announce its second-quarter earnings on Wednesday, Aug. 13.
According to Standard & Poor's, $10,000 invested in the company five years ago would be worth $1,479 today.
Collins & Aikman has grown quickly, with sales up 113 percent over the past year. But the company posted a $3.1 million loss on sales of $3.89 billion for the year ended Dec. 31, 2002. For the first quarter, the company posted a loss of $28.7 million.
The company ranked No. 12 on the Automotive News list of top 150 original equipment suppliers to North America, with original equipment sales of $3.14 billion in 2002.
Mosingo joined Collins & Aikman at the end of 2001 as part of its acquisition of the trim unit of Textron Automotive Co. Inc., where he had earned a reputation in lean manufacturing. His appointment as CEO - replacing Evans, who had managed the purchase of the Textron group - came as a surprise even to him, Mosingo said during an interview last April.
Collins & Aikman manufactures plastic and interior automotive components.
Plastics News staff reporter Rhoda Miel contributed to this report. Plastics News is a sister publication of Automotive News.