Airline Executives leave as profit falls

Tuesday, 02 March 2010 20:03

Airline Qantas Airways yesterday announced the sudden resignation of chief financial officer Colin Storrie, citing personal and health reasons. Chief executive Alan Joyce said of Mr Storrie: “his work as CFO has been fundamental to the airline’s current financial strength.” Mr Storrie, who has held senior financial roles at the airline for a decade, will be replaced by his deputy, Gareth Evans, while a permanent replacement is selected.

Airline Virgin Blue yesterday confirmed that John Borghetti will take over the role of chief executive when founding chief executive Brett Godfrey retires in May. Mr Borghetti is a former senior executive at rival Qantas Airways, and is expected to seek a larger share of the more lucrative business market for the budget airline. However, Mr Borghetti said Virgin would not move away from its core “leisure-based” market.

PBL Media’s ACP Magazines publishing business yesterday announced it had purchased the monthly magazine, Recipes +, from small publisher Knockout Media. Phil Scott from ACP said “we wanted to get into the big-volume, low-cover price end of the food magazine market.” ACP is estimated to have paid $5 million for the title. Rival publisher News Ltd will launch another food magazine, MasterChef, in May.

Office supplies company Corporate Express yesterday announced financial results for the year to January 31, with net profit down 6.9 percent to $57.2 million. Despite the fall, the result was above market forecasts of $55 million. Chief executive Paul Hitchcock said “we’re very positive about the year ahead but we’re still yet to see an upturn in spending by our customers.”

Agricultural chemicals company Nufarm yesterday announced a $105 million decrease in first-half earnings, and now expects to report a loss of $40 million for the period. Investors were told of the downgrade at an extraordinary general meeting called to vote on the sale of 20 percent of the company to Japan’s Sumitomo Chemical. Analysts say the timing of the announcement raises questions about Nufarm’s disclosure practices.

The Australian Bureau of Agricultural and Resource Economics yesterday released its March commodities report, including forecasts that iron and coal export earnings will increase 23 percent to $78.4 billion next year. The report says that the increase in demand for Australian exports will continue to be driven by China. St George Bank economist Justin Smirk yesterday said that Australia’s terms of trade are the best since World War II.

The Australian Shareholders Association yesterday voiced concerns about the proposal by West Australian businessman Kerry Stokes to merge his media company, Seven Network, with his WesTrac mining and industrial equipment group. Claire Doherty from the ASA said the companies would have to address issues such as the related-party nature of the transaction, the possible dilutionary effect of the merger, and concerns about the independence of Seven’s independent directors.

Mining company Rio Tinto yesterday said that its divestment program has now raised more than US$10 billion. Chief financial officer Guy Elliott said “the recapitalisation leaves Rio Tinto well-placed to consider value-adding investment opportunities as they emerge.” Chief executive Tom Albanese recently said he is concerned that the global economy may again fall into recession, reducing demand for commodities.

Geoscience Australia and the Australian Bureau of Agricultural and Resources Economics yesterday released the Australian Energy Resource Assessment, providing the first audit of Australia’s energy resources. The report found that coal will provide a declining proportion of energy, from almost 40 percent in 2007-08, to around 23 percent by 2030. The major replacement fuel will be gas, which is expected to provide 34 percent of energy by 2030.