PEOPLE : Polaroid Taps First Outsider as Chairman

Polaroid Corp. on Monday named Black & Decker Corp. executive Gary DiCamillo as chairman and chief executive, the first outside manager to lead the camera maker in its 58-year history.

DiCamillo, 44, will take over Dec. 1 from I. MacAllister Booth, who announced his retirement in February. Booth has headed the company since 1986.

In a statement from Polaroid’s Cambridge, Mass., headquarters, Booth called DiCamillo a “proven leader” with a penchant for marketing that has helped Black & Decker excel as a leading purveyor of tools and home appliances.

“He brings a wealth of skills and experience that will be an asset to Polaroid as the company continues to push into new markets with new products,” Booth said.

DiCamillo is a group vice president at Black & Decker, based in Towson, Md., where he gained notice for reshaping the power tools and accessories businesses. The company’s newest product twist is a line of home power tools with interchangeable battery packs.

Black & Decker announced DiCamillo’s departure when it released quarterly earnings last week, without saying where he was heading.

In trading Monday, Polaroid closed down $1.125 to $40.875, and Black & Decker was unchanged at $32.875, both on the New York Stock Exchange.

DiCamillo has strong marketing, product development and cost-cutting experience, and a background in international markets. But analysts said he lacked the technical expertise some shareholders wanted.

“He was very effective in terms of paring unnecessary costs and improving margins,” said Alex Henderson of Prudential Securities Research.

DiCamillo takes over Polaroid at the end of a year in which the company sank money into its fledgling electronic imaging business, while its instant photography market shows signs of maturing.

“The company has been not pushing its cash cow, which is instant film, because it has been spending and losing so much on electronic imaging,” said Brenda Landry, an analyst with Morgan Stanley.

Electronic imaging cost the Polaroid $180 million in operating loss last year, and a projected $180 million this year, with most products remaining in the pipeline.

Founded by Edwin Land in 1937 to make polarizing filters, Polaroid now has 11,300 employees worldwide, about 7,000 in Massachusetts, and $2.3 billion in annual sales.

In an effort to cut operating costs this year, the company laid off 930 this year.