Fletcher dumps Aussie distribution chief in ANZ merger, CIO departs
By Jonathan Underhill
Aug. 3 (BusinessDesk) - Fletcher Building has dumped its Australian head of distribution and will merge the business with its New Zealand counterpart, while separately announcing the departure of chief information officer Carl Powell.
The merged division will include the New Zealand PlaceMakers and Mico distribution businesses, the New Zealand steel distribution businesses, and Tradelink in Australia, chief executive Mark Adamson said in a statement. Dean Fradgley, currently chief executive of New Zealand Distribution, will head the new division, while Tim Hickey will leave the company after just two years in charge of Australian distribution.
"We believe we can drive further performance enhancements through a unified management structure and better leverage Fletcher Building’s capabilities across the expanded distribution portfolio," Adamson said.
He said Hickey, who had previously worked with private equity, had initially been hired on a short-term contract to transform the Tradelink business.
Adamson also said CIO Carl Powell was leaving the company and would return to the UK for personal reasons. A search has begun to find a replacement.
In May, Fletcher reiterated its guidance for operating earnings before one-time items to be at the lower end of a forecast range of $650 million to $690 million in the 12 months ended June 30. First-half earnings fell 26 percent after the company took charges for site closures and to write down goodwill on its Forman Contracting business. Earnings from Australia dropped 36 percent.
Fletcher shares rose 0.4 percent to $7.95 and have fallen 4.6 percent this year.