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'Chainsaw Al' moves ahead
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June 11, 1997: 9:10 p.m. ET
Sunbeam CEO takes a bow for company's turnaround
From Correspondent Bill Tucker
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NEW YORK (CNNfn) - Some hail Sunbeam's Al Dunlap as the chief executive who never rests, while others deride him as 'Chainsaw Al.'
Whichever is the case, Sunbeam recently declared the first phase of its three-year restructuring plan is finished
In the past 11 months, Al Dunlap created more than $2 billion in value for stockholders -- but there was no gain without pain. He cut the workforce in half and slashed 60 percent of the managers on board.
Appearing on "Moneyline with Lou Dobbs," Dunlap touted his ability to resurrect almost any dying business.
"By the time I go into a corporation, you're looking for a pulse," he said. "And I have to take the difficult decisions that my predecessors have not taken."
Wall Street loved his initiative, tripling the stock from $12 per share when Dunlop joined Sunbeam to $38.50 on Wednesday -- an all-time high.
In short, Dunlap lived up to his reputation.
"He is extremely shareholder driven," said equity analyst Scott Graham of Oppenheimer & Co. "He is a man that is 'no muss, no fuss.' He gets right to the problem, identifies problems quickly and quickly fixes them."
But Dunlap's job is not done.
His three-year plan includes more than cutting jobs and expenses. By the end of the decade, he wants to double Sunbeam revenues to $2 billion, raise operating profit margins from 14 percent in the first quarter of 1997 to 20 percent and increase international sales to $600 million --all while launching at least 30 new products each year.
Dunlap has his doubters.
"If he can do that, then I'll eat crow," said John Whitney, a management professor at Columbia University's business school. "I'll say I was wrong about Al Dunlap and that substance is more important than style, but I think they are both important."
Dunlap said his actions are all about making tough decisions that aren't so tough after all.
"Any time you show legitimate leadership, you will criticized," Dunlap said "And unfortunately, a lot of the people … don't understand business and want to make it terribly complicated. I think it's just about doing the right things on a consistent basis.
Dunlap's style attracts the most heat from his critics, but even they cannot argue with his results: First-quarter earnings tripled to 24-cents per share, and sales rose thirteen percent. 
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