Owens & Minor (NYSE:OMI) announced today that it appointed Andrew Long as EVP and CEO for its products & healthcare services segment.
Its stock also took a major hit today on lower 2022 guidance amid continued macroeconomic headwinds. OMI shares dropped more than 31% to $15.82 apiece by midday trading today. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was down more than 1%.
Long’s appointment comes as part of a handful of executive changes. He replaces the departing Jeffrey Jochims in the position. Owens & Minor promoted Alexander Bruni to assume Long’s former roles of EVP and CFO. Long served in those roles since joining the company in November 2019.
“Andy has been a great leader at Owens & Minor and I am looking forward to having Andy in this role where his skillset will help drive the products & healthcare services segment to a stronger future,” said Edward Pesicka, Owens & Minor president and CEO. “Andy is well prepared for these new responsibilities and has a track record of success – building a world-class finance organization, leading and strengthening our IT capabilities and developing and deploying the Owens & Minor Business System.”
Bruni joined Owens & Minor in April 2020 as SVP of finance. He first led corporate FP&A, then progressed to head up finance for the products & healthcare services segment. Most recently, he served as finance leader for the patient direct segment.
Previous roles include CFO and COO of Centerline Communications and VP of finance at Patheon.
“Alex has successfully served as the operating CFO of each segment as well as leading our corporate FP&A function. This broad experience has given Alex a view across the entire organization and a deep understanding of the global enterprise, preparing him very well for this new role,” said Long.
Owens & Minor shares preliminary third-quarter results
Owens & Minor also announced preliminary third-quarter results for 2022 and updated its full-year guidance. It expects to report adjusted EPS between 39¢ and 41¢ for the three-month period.
The company lowered its projections for full-year EPS. It now expects a range between $2.50 and $2.60. The previous guidance fell between $2.85 and $3.15.
“While the Patient Direct segment continues to perform well, the Products & Healthcare Services segment is facing more pressures than previously expected with the unfavorable macro-economic conditions that show no signs of abating, along with elevated customer stocking levels and continued lower than expected hospital procedure volume. Accordingly, the pace of change at Owens & Minor must accelerate and I believe the leadership changes announced today will provide the Company with the best opportunity to contend with these headwinds,” Pesicka concluded.