Monday, Mar. 10, 1952
Shift at Martin
The Glenn L. Martin Co., which had a new president just three years ago, last week got another one. Out went Chester Charles Pearson, 45, the aircraft production man (formerly with Curtiss-Wright and Douglas) who was hired in 1949 to solve the debt-ridden company's problems. In came George Maverick Bunker, 44, an engineer with no aircraft experience but plenty of promotional know-how.
An M.I.T. graduate who got his start in the Depression washing kettles for the Campbell Soup Co., Bunker moved to the Wilson meat-packing company as an engineer in 1934, did a stint as head of the industrial engineering department, and became manufacturing vice president for the Kroger Co. Then Cincinnati's Trailmobile Co., makers of truck trailers, heard about the boy wonder and hired him as president in 1949. In a year and a half, Bunker streamlined Trailmobile's sales, services and production, doubled sales to $52 million and increased the net more than tenfold to $3,000,000. After Trailmobile was sold to Pullman, Inc., for $41.5 million, President Bunker got the call from Glenn Martin.
New Troubles. At Martin, Wonder Boy Bunker will have to perform wonders. Last year, though the company had a backlog of $400 million, it lost an estimated $22 million. Part of Martin's troubles stern from its helter-skelter expansion after Korea. Its work force mushroomed from 7,500 to 23,000; the average length of employment among its workers dropped from twelve years to six months. Turnover jumped from 12% to 70%, and absenteeism soared.
In addition, Martin took a $36 million beating on its ill-fated 2-0-2 transport (TIME, April 23), has taken another beating so far on its new two-motored airline plane, the 4-0-4. One of Martin's major jobs--building Britain's twin-jet Canberra bomber--has proved costly. There have been long delays trying to mesh British and American blueprints.
New Cash. To help him do his job, President Bunker will get badly needed new working capital. From RFC, Martin will get another $12 million, bringing its total RFC debt to $26.4 million; from a Navy-guaranteed private bank loan, it will get another $11 million. Under a new financing plan still to be approved by stockholders, Martin will issue $6,000,000 in new notes, convertible into common stock. Some of these have already been spoken for by Laurence Rockefeller, who has had notable success in other aviation ventures. In addition, Martin will offer its present stockholders (excluding Glenn Martin himself) one share of stock, at $6, for each share now held, thus nearly doubling the outstanding shares.
If the plan is approved, Founder Martin's holdings will be cut in half to about 13% of the outstanding stock and three trustees will elect a new board of directors. Chairman Martin, now 66, is also expected to step out of the management picture completely.
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