Dunlap shakes up Sunbeam

August 22, 1996: 8:28 p.m. ET

Investors cheer changes made by new CEO, known as 'Chainsaw Al'
From Correspondent Rhonda Schaffler

NEW YORK (CNNfn) - Shares of Sunbeam Corp. rose 1/8 to 21-5/8 Thursday, the latest climb in what might be described as an "Al Dunlap rally."
     Since the former Scott Paper chief executive officer took over Sunbeam's helm last month, the company's stock has risen an eye-popping 73 percent, adding $750 million of market capitalization. As a result, investors are nothing short of euphoric over the arrival of the man known as "Chainsaw Al."
     Al Dunlap cares about respect: "You wanna be liked?" he says "Get a dog. I have two."
     And Dunlap has earned respect by turning around troubled companies. In April 1994, the former paratrooper took over as the head of Scott Paper and promptly waged war. On his third day on the job, he fired most of the company's top management. He also streamlined operations and cut costs.
     As a result of his moves, Scott's stock skyrocketed, rising four-fold in less than two years. He later negotiated the sale of Scott to Kimberly-Clark for $9.4 billion -- and pocketed $100 million for his efforts.
     Dunlap has not done too bad for a kid from New Jersey whose grandmother told him that if he worked hard, he might make $10,000 a year. (207K AIFF)
     Dunlap has already rolled up his sleeves at Sunbeam, firing six top executives, including the chief financial officer. He has also tapped into the team that helped him revive Scott Paper -- people he describes as "outstanding" and "having special talents."
     Dunlap has pumped $3 million of his own money into Sunbeam stock and has made a five-week profit of $2 million.
     Analysts say Sunbeam's transformation is just beginning.
     "There are so many things that can be done, should be done and will be done. And...you hire Mr. Dunlap because you know he isn't going to miss too many of them," said to Mark Hassenberg, consumer products analyst at Donaldson, Lufkin & Jenrette.
     Dunlap, appearing on CNN's Moneyline with Lou Dobbs, said Sunbeam was "on the fast track." He added that he expects to have a major restructuring plan for the company in place by the end of the year.