Aurizon’s share price dips after warning of FY25 guidance miss, reorganisation
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Aurizon have slipped after it warned the market it expects to miss full-year earnings guidance and that it is combining its bulk and containerised freight operations under a single group executive.
At 11:25am AEST, Aurizon shares had fallen 1% to $2.97.
Aurizon set to miss FY25 guidance, CFO moved to new role
The news: Rail freight operator Aurizon said it expects to miss its full-year earnings guidance, reflecting a slide in network volumes throughout the year.
The numbers: Aurizon expects underlying earnings to be $1.58 billion, short of its guidance range of $1.66 billion to $1.74 billion.
Volumes across the Central Coast coal network are expected to be 10 million tonnes lower than Aurizon's regulatory volume assumption, resulting in revenue under-recovery.
The context: Aurizon also announced that it will combine its bulk and containerised freight operations under a single group executive to unlock synergies and streamline accountability.
Current chief financial officer and strategy group executive George Lippiatt has been appointed to the new role.
Aurizon's group executive for containerised freight Gareth Long has been appointed acting CFO and strategy group executive. Anna Dartnell will depart Aurizon, after leading the bulk business since May 2023.
All the new appointments are effective from 1 July, the company said.
In May, Aurizon outlined a number of actions in response to soft market conditions, including identifying $50 million of projected annualised savings and cutting 200 roles, subject to consultation.
What they said: "These steps reflect our continued focus on execution as we transition into the next phase of Aurizon's strategy," said managing director and CEO Andrew Harding.
"With the containerised freight business now established, and in the context of the ongoing review of our non-operational cost base, it is logical to bring bulk and containerised freight together so we can harness the commercial and operational synergies between the two businesses," he said.
The source: ASX
