JM Smucker appoints two execs after pact with activist investor Elliott

(Sharecast News) - American food and beverage group JM Smucker has appointed two new boardmembers following "constructive engagement" with activist investor Elliott Investment Management. The firm said it was adding Woo-Sung Chung and David Singer to its board from mid-April as part of its commitment to "continued board refreshment".

"The appointments follow constructive engagement with Elliott Investment Management, L.P. The company has also entered into an information-sharing agreement with Elliott to facilitate collaboration toward the shared goal of driving sustainable value for all shareholders," JMS said in a statement.

It is unclear what size stake Elliott holds in JM Smucker.

Chung, the executive vice president and CFO of NRG Energy, and Singer, most recently CEO of Snyder's-Lance, are said to bring the "additional skills and experiences to accelerate our ongoing business momentum", according to group CEO and chair Mark Smucker.

The move came as third-quarter results from JM Smucker came in ahead of forecasts, with net sales up 7% year-on-year at $2.34bn and operating losses 8% lighter at $548m. Adjusted earnings of $2.38 a share beat the consensus forecast of $2.27.

However, the firm lowered the midpoint of its guidance range for net sales growth for the full year to 3.5-4.0% from 3.5-4.5% due to the recent fire at its Kansas manufacturing facility.

JM Smucker shares were up 6.7% at $113.66 by 1458 GMT.