The Board of Downer EDI Limited (Downer) today announced the appointment of Grant Fenn to the position of Managing Director and Chief Executive Officer, following the resignation of Geoff Knox on 30 July 2010.
Downer’s Chairman, Mr Peter Jollie AM, thanked Mr Knox for his contribution to the company.
“Geoff has been a driving force for Downer over the past two and a half years. This period included the Global Financial Crisis and the resultant testing market circumstances across Downer’s portfolio. Geoff has recruited some excellent talent and has taken occupational health and safety, and environment to be a defining feature of the Downer culture. We wish Geoff well in his next endeavours,” Mr Jollie said.
Mr Fenn joined Downer as Chief Financial Officer in 2009 and was appointed to the Downer Board as Finance Director in July 2010.
“Prior to joining Downer, Grant was a member of the Qantas Executive Committee for over 10 years where he was responsible for the Airports, Freight, Flight Catering and Qantas Holidays businesses,” Mr Jollie said. “His final role was Executive General Manager, Strategy and Investments. During his time at Qantas, Grant also served as Chairman of Star Track Express and was on the Board of Australian Air Express, the joint venture freight business with Australia Post.
“We recruited Grant not only for the breadth of his financial, strategic, operational and leadership skills, but also as a potential future Chief Executive Officer. The Board is pleased to appoint him to that role.”
Commenting on his appointment, Mr Fenn said the Group’s strong underlying businesses are well positioned and very competitive in their respective markets.
“The level of work in hand is currently over $17 billion with more than 75 per cent of work in 2011 already contracted. There is also a strong pipeline of opportunities supporting continued demand for our services and I believe Downer has a bright future.”
Mr Fenn said Downer was fully focused on delivering the Waratah trains as part of the NSW Rolling Stock Public Private Partnership with Reliance Rail and RailCorp.
“We are working very hard with RailCorp to meet the target of delivering the first train set before the end of this calendar year and we will keep the market informed about our progress,” Mr Fenn said.
Whilst the year-end accounts are currently being finalised, Mr Fenn confirmed that excluding the $260 million (pre-tax) Waratah train provision and asset impairment announced on 1 June, he expects the Downer 2010 full-year Net Profit After Tax (NPAT) to be approximately $194 million and is in line with market consensus. Including the impact of the Waratah train provision and asset impairment, the NPAT result is expected to be approximately $3 million.
Mr Fenn said he would discuss the company in more detail when Downer announced its annual results on 19 August 2010.
He added that the current Deputy Chief Financial Officer of Downer, Kevin Fletcher, had been appointed Acting Chief Financial Officer. Mr Fletcher has been Deputy CFO of Downer since February 2010.
“I am excited by the opportunity and look forward to working with the Downer team to build a strong and successful future for our shareholders, our customers and our people,” Mr Fenn said.
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