Schuler Resigns as Abbott President; Clash Reported

Jack W. Schuler has resigned as president of Abbott Laboratories, the nation’s largest infant formula maker, after apparent personal differences with company Chairman Robert A. Schoellhorn.

Schuler, who was named president of the North Chicago-based company in 1987, is the third Abbott president in five years to resign after running afoul of Schoellhorn. Schoellhorn has assumed Schuler’s responsibilities as president.

The announcement came as a surprise to industry analysts. Schuler is credited with the development of Abbott’s fast-growing medical diagnostics business. Most of Schuler’s 16-year tenure at Abbott has been spent in the company’s diagnostic arm.

“He’s a capable, competent gentleman who just didn’t get along with the chairman,” said industry analyst David J. Lothson at Paine Webber Inc.

Schuler’s resignation comes as Abbott is facing serious competition in its infant formula business, which has accounted for up to 40% of the company’s operating income. Abbott claims 54% of the nation’s infant formula sales and the nation’s best-selling brand, Similac.

But heavy price competition has taken a toll on profits, say analysts. Also, new products introduced by Los Angeles-based Carnation Co. and a joint venture by Gerber Products and Bristol-Myers have also intensified competition.

“Their market share has not declined, but profitability has,” said industry analyst Jerry E. Fuller at Duff & Phelps.