By Andrew Green, Staff Reporter MARLENE SUTHERLAND has retired from Carreras Group Limited, giving up her executive duties as Group Finance Director, Company Secretary and as a Trustee of the Carreras Group Superannuation Scheme.
The retirement became effective yesterday, the Carreras board of directors stated in a release also issued yesterday. Mrs. Sutherland will remain on the Carreras Board as a non-executive director. "There will be no change at Carreras," said Patrick Smith, Carreras' head of Corporate and Regulatory Affairs. "Changing one director will not change the course of the company."
Michael NcNally has been appointed as Finance Director and Company Secretary of Carreras Group. Michael Bernard was also appointed a director of Carreras Group, with special responsibilities as General Manager of the Tobacco Division and Edward Vargas, Area Finance Manager for British American Tobacco Central America and Caribbean Region, was also appointed as a Director for Carreras.
"We have a stronger board now," Mr. Smith said. "It is not a loss."
Mrs. Sutherland will remain at the Carreras Group for a period of time to assist in the transition of her executive duties. She will be relocating to the United States to join her family and pursue a Master of Law Degree.
Mrs. Sutherland joined Carreras Group in June 1980 as Group Financial Controller. She has served the Group as Director of Finance, Company Secretary and as a member of the Board of Directors since 1984.
One senior source in the auditing community said it was unusual for such a senior officer to leaver her duties with what was apparently immediate effect. But the statement issued by Carreras said, 'The Board of Directors was unanimous in expressing its appreciation and praise for Mrs. Sutherland's exemplary performance in the discharge of her executive duties and her valued contribution to The Carreras Group of Companies.'
BETTER PERFORMERS
Carerras has traditionally been regarded as one of the better performers of companies listed on the Jamaica Stock Exchange. Net stockholders' profit at Carreras Group rose 7.5 per cent for the nine months ended December 31, of its financial year. The profit figure rose $159 million to $2.3 billion. But this overall improvement masks a more recent trend. In the three months to December 31, the net stockholders' profit fell 16.1 per cent to $682 million. The third quarter performance has not been as buoyant as the previous quarters in the year, due to a falloff in exchange gains and also increasing marketing and administrative expenses.
A big foreign exchange gain in the first quarter had been a major contributor to the overall $493 million in foreign exchange gains for the nine months. In the last three months of the period however, foreign exchange gains amounted to $109 million, down $108 million from the same period the year before. There was also a $174 million increase in marketing and administrative expenses to $442 million in the December quarter. And Carreras subsidiary, the Cigarette Company of Jamaica Limited, has received income tax assessments covering the years 1997 to 2002 from the Commissioner for Taxpayer Audit and Assessment totalling $5.7 billion.
Against the background of that situation, Carreras is in the midst of a transition. Formerly an investment holding company with a widely diversified portfolio, the directors have decided to refocus on its core cigarette business.
Operations of the Cigarette Company of Jamaica Limited are being terminated based on a decision reached at an extraordinary general meeting held on March 15. As Carreras Company secretary, Mrs. Sutherland had direct responsibility for overseeing this process as well as the liquidation of Graphic Arts Limited, Carreras Exports Limited, Jamaica Flexographic Limited, Carreras Development Limited, Rothmans Pall Mall Limited, Cigarette Company of Jamaica Limited, Agricultural Products of Jamaica Limited and Jamaica Graphic and Printing Supplies Limited.
