BUSH CABINET Bush picks Kellogg chief to take over at Commerce



His work at the cereal maker has earned him worldwide respect.
WASHINGTON (AP) -- Carlos M. Gutierrez, picked by President Bush to be Commerce secretary on Monday, rose to the top of one of America's biggest corporations after leaving Cuba more than four decades ago as a political refugee.
Gutierrez, the chief executive of Kellogg Co., was dubbed "the most important Hispanic in corporate America" after he helped revive the cereal giant's fortunes with a corporate and marketing overhaul.
In an announcement ceremony at the White House, Gutierrez told Bush that he had been privileged to live the American dream since leaving Cuba with his parents and a brother in 1960 as political refugees one year after Fidel Castro came to power.
Gutierrez, 51, said in his acceptance remarks that be began working at Kellogg by "selling cereal out of a van in Mexico City" in 1975.
He rose from that job to become general manager of Kellogg's Mexican manufacturing operations in 1983, taking over a facility that came in last in the company's internal rankings of its plants around the world. Within two years, Gutierrez had transformed the facility into one of Kellogg's top-performing plants.
Business background
He became chief executive of Kellogg in April 1999 at the age of 43 after having worked all over the world for the cereal maker.
Since taking over, Gutierrez narrowed the company's primary focus to cereal and wholesome snacks, providing new life for such brands as Special K and winning admiration on Wall Street for reviving the fortunes of a flagging company.
Kellogg's net sales rose from $6.2 billion in 1999 to $8.8 billion last year, a 43 percent increase, helping to drive earnings per share up by 131 percent.
For his efforts, Gutierrez received $7.4 million in total compensation in 2003, including salary, bonus and incentive payments, according to a Kellogg proxy statement. He owns or has option rights to 2 million shares of company stock.
Gutierrez gained respect for his ability to guide Kellogg's fortunes not only in the United States but around the world. The Michigan-based company has manufacturing facilities in 19 countries and sells its products in more than 180 nations.
The administration has been engaged in a campaign to bolster the fortunes of America's struggling manufacturing sector, which has seen the loss of 2.7 million factory jobs over the past four years as the country's trade deficit soared to record heights.
In his comments, Gutierrez said he had no doubt that the United States would remain the best country in the world with which to do business.
"We have the best people. We have the training. We have the workers," Guiteirrez said. "I believe the 21st century is really and truly the American century, as the president does."
Bush's nomination of Gutierrez to succeed Donald Evans as head of the sprawling Commerce Department, must be confirmed by the Senate.