Asia / Oceania
Boral foundations shaken as CEO steps down
May, 29 2012
(Australia) -- The chief executive officer of building products manufacturer Boral has stepped down, after reportedly losing the support of the company's board.
Mark Selway stepped aside yesterday, making way for divisional managing director of Boral Building Products Ross Batstone to step in as acting chief executive immediately.
Mr Selway was appointed to the role on January 1 2010, amid a weak domestic construction market and economic uncertainty around the world.
"Over the last two years Boral has undergone significant restructuring including closure of non-performing businesses, a significant focus on lean manufacturing processes, re-emphasis on sales and marketing and investment in innovation and growth," chairman Bob Every said in a statement to the Australian Securities Exchange yesterday (May 22).
"While operational improvements throughout Mark’s tenure have been excellent, the board has decided that the stewardship of the company going forward requires a chief executive with a leadership style suited to harmonising the changes that have occurred over the last two years throughout the company," Dr Every added.
Boral took the opportunity to announce four immediate priorities in order to maintain its current growth strategy, including lean manufacturing, excellence in sales and marketing, investment in innovation and further integration of Boral Gypsum Asia.
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The news comes just one month after the group issued a trading update, warning investors that Boral's net profit could be much lower than originally forecasted.
Due to continued wet weather conditions and low housing activity in New South Wales and Queensland, earnings in the three months to March 31 was some $22 million below expectations - forcing Boral to adjust its full year outlook accordingly.
Half year management guidance was previously between $150 million and $175 million.
Boral shares were down two cents to $3.54 in lunchtime trading yesterday immediately following the news of Mr Selway's departure, however stocks recovered to close 1.4 per cent higher at $3.61.
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