Longs Drug Stores Corp., which operates 32 drugstores in Hawaii, said today President and Chief Executive Steve Roath has resigned. Longs CEO resigns,
board restructuring;
earnings upBy Star-Bulletin staff
Board member Harold Somerset, former chief executive of Alexander & Baldwin's California and Hawaiian Sugar Co., was named president and chief executive while Longs conducts a search for Roath's replacement, the company said. Somerset joined C&H in December 1984 and rose to become A&B's vice president and general counsel. He retired in 1993.
Roath first joined the company as a pharmacist in 1964 and rose to become president in 1991. He added the CEO title in 2000. Longs, which is based in Walnut Creek, Calif., did not give a reason for Roath's resignation.
At the same time, the company said it will restructure its board to increase representation by outside directors. Longs is "taking steps that will help ensure a more independent board to serve the interests of our stockholders," said Donald L. Sorby, who will be the new board's lead director.
The company's fourth quarter earnings, also reported today, increased 172 percent from a year ago, to $21.8 million, though those results are affected by the company's takeover of RxAmerica benefits management company and a $15.4 million tax charge a year ago. For the full year, Longs profits increased 7.5 percent to $4.3 billion.
Longs operates 437 stores in six western states, including Hawaii.
Shares of Longs fell 28 cents today to $24.93. The news was released after the close of trading.
Also after hours, Longs warned that its first-quarter earnings will come in below analysts' estimates.