Case-IH's Ashford resigns - cites personal reasons.

Case-IH's Ashford Resigns Cites Personal Reasons

EXPRESSIONS of surprise and disappointment are the usual reaction to news that James K. Ashford has resigned the president and chief executive officer post with Tenneco's JI Case farm equipment unit.

The widely known and respected 54-year-old Ashford is credited with returning the Case division to profitability during his 3-year tenure. His success with managing the firm, in fact, had led to talk of his eventually replacing 60-year-old Tenneco chairman and chief executive James L. Ketelsen.

Ashford cites only personal reasons for leaving the Case helm. He also resigned positions as executive vice president and a director of the parent Tenneco. Ashford has worked at various Tenneco capacities since 1958. Before his brief tenure at Case, he headed Tenneco's automotive parts unit.

Ketelson, who is expected to take a more active role in managing Case until a successor for Ashford is named, praised Ashford for his "significant contribution to the company both in his earlier position in the automotive parts division and particularly in the critical role he has played over the past several years in leading the turnaround at Case."

"I regret that this decision has been made, but I understand his reasons and wish him well," Ketelson said.

Herman Kosten, regional manager for Case IH in Memphis, Tenn., says, "It was a disappointment and surprise for a lot of people because we felt comfortable with his (Ashford's) leadership and liked the direction he was taking the company. We feel that he deserves a lot of credit for turning the company around to a profitable position."

Ashford is said to have established a strong management team at Case after he took over in late 1987. He replaced some 80 percent of the division's managers at that time.

Earning reports are once again clouding the outlook for Case. Operating profits for 1990 slide to $186 million and Ashford told Case workers, "In 1991, you face tough economic conditions and softness in the agricultural and construction equipment markets."

First quarter results may be especially bleak for Case because of production cuts to balance inventories. The division reportedly accounts for more than 1/3 of Tenneco's total revenue. The parent firm also has a natural gas pipeline, packaging, automotive parts and shipbuilding operations.

In a letter to Case employees, Ashford only slightly elaborated on his terse resignation notice by saying his leaving the firm "was a purely and completely personal one. It did not result from disagreements over policy or anything of the kind. Nor does it mean that Tenneco's management and board have anything but high confidence in Case and the things we have done together over the past several years.

Ashford told Case employees he continues to "believe strongly that Case is on the way to success."

"Though I've decided that my resignation is the right thing for me and my family at this point, I have absolute confidence that this company is on the right course, that it's going to stay on course, and that great things lie ahead for Case and all the people who make it the great organization it is."

Tenneco said Kenneth L. Otto, a Tenneco senior vice president, has been assigned the responsibility of directly coordinating day-to-day activities at Case. Otto currently is responsible for Tenneco's worldwide human relations, productivity and quality programs and other administrative functions.