“ROCKFORD, MI — If Wolverine World Wide executives are worried about mounting costs and lawsuits related to Michigan drinking water pollution, they weren’t giving any indication during the company’s fourth quarter conference call.
Analysts on the Wednesday, Feb. 21 call didn’t ask about the company’s rising contamination-related costs, which Wolverine expects to reach at least $40 million. Instead, they drilled company leaders on revenue growth, promotional activity and growth drivers.
That’s a change from last quarter, when the first question posed by an analyst during the Oct. 8 call was about the status of groundwater contamination costs and potential liability.
Four months ago, CEO Blake Krueger said Wolverine planned to spend $3 million in 2017 responding to the environmental mess caused by using 3M Scotchgard for decades to treat leather at its downtown Rockford tannery. That fourth quarter total has swelled to $35 million…
The move [of setting aside another $40mil to provide testing, bottled water, and remidiation expenses] allowed the company to essentially to sidestep questions about the issue during Wednesday’s call…
More than 70 lawsuits have been filed against the 140-year-old shoe company, alleging at least three deaths and scores of cancer diagnoses…
On the most recent call, CEO Blake Krueger said he was optistmic about the company’s future after the progress made during a 2-year Wolverine Way Forward restructuring plan. In the last year, Wolverine shuttered 200 stores, sold the Sebago brand, licensed out Stride Rite, and shed Department of Defense footwear business in Big Rapids…
Now, Wolverine is ready to spend up to $45 million on its newest initiative, dubbed Global Growth Agenda, focused on creating more products, a bigger online presence and international expansion, especially in China and the Asia-Pacific region.”
**It should be noted that China has much more lenient regulations (if any) on PFAS chemicals**
Read the full article by Shandra Martinez.