ZAANDAM, Netherlands -- Ahold here said last week it has named Dudley Eustace chief financial officer and a member of the executive board, effective immediately.
or to joining Smith & Nephew, Eustace was deputy chairman and director of finance of Netherlands-based Philips Electronics.
Ahold has been in turmoil since it said last month that U.S. Foodservice, a Columbia, Md.-based subsidiary, had overstated earnings by more than $500 million in 2001 and 2002. The news forced the resignation of Cees van der Hoeven, president and chief executive officer, and Michael Meurs, Eustace's predecessor as CFO.
The types of issues Eustace can expect to face in his new job include the following developments noted in published reports last week:
Ahold will eliminate $30 billion in reported sales when it changes the way it accounts for joint ventures. However, the change will not affect earnings, only revenues at some of its companies.
Henny de Ruiter, chairman of Ahold's supervisory board, said he had been aware of problems with Ahold's Argentina subsidiary two weeks before the company announced them in late February.
The U.S. Justice Department, Securities and Exchange Commission and FBI are interviewing witnesses and reviewing documents related to USF and other U.S. and overseas operations of Ahold.
Ahold also said the period during which van der Hoeven and Meurs would "stay on to effect an orderly transition" is now complete.
