Asciano moves on cuts

Asciano, the transport company, said it has brought forward planned job cuts at its ports business and will axe 270 roles at Port Botany.

Asciano brought the cuts forward in response to a downturn in market share in its ports division, according to the company.

A total of 270 jobs are to be cut, specifically at Asciano’s Port Botany operations.

The company reported soft third-quarter numbers, but the announcement focused on the port market-share downturn and the accelerated job reductions.

Asciano told fund managers it remained confident that revenue and pre-tax earnings for the full financial year to June would show growth, despite the soft third-quarter results.

Asciano communicated the update to fund managers on Thursday, explaining the timing of the job cuts and its outlook for the year.

The move signals management response to a ports market-share downturn; while job cuts can reduce costs, investors should note the company still expects full-year revenue and pre-tax earnings growth, per the announcement.

According to Asciano, despite the soft third-quarter numbers and the accelerated job cuts at Port Botany, the company remains confident that revenue and pre-tax earnings for the financial year to June will grow.