Transpacific chief goes, with tough decisions on the way
Transpacific Industries has flagged the sale or closure of underperforming operations as the waste management company's chief executive resigned and it tipped lower earnings.
Transpacific forecast a net profit of between $46 million and $53 million for this financial year. The company has been hit by weaker economic conditions and cost-cutting drives in the industrial and mining sectors.
Transpacific projected earnings before interest, tax, depreciation and amortisation of between $405 million and $415 million, below the previous year's $440.2 million.
Its shares closed 11.8 per cent lower at 78.5¢ on Monday.
"Market conditions were tough in the first half and [they] have generally deteriorated further," chief executive Kevin Campbell said.
Mr Campbell said he was leaving as he was no longer able to "provide the longer-term commitment needed to drive the continuing transformation of the business".
It is believed he resigned for personal reasons. Mr Campbell commuted between Queensland, where Transpacific is based, and Melbourne, where his family lives.
Transpacific, which owns the Cleanaway landfill businesses, said it would continue to focus on cost-cutting and debt reduction and was making an operational review.
"It will result in the sale or closure of a number of underperforming operations," Transpacific said, adding that the review's results would be released before it reported its 2013 financial year results.
Earlier this year, the company axed 200 jobs.