Fortescue shares drop on lower profit, CEO exit
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More news: Shares in Fortescue Metals Group were down more than 5% to $19.86 in early trading on the ASX, after the iron ore miner posted a 23% slide in full-year profit and flagged ongoing management upheaval with the exit of CEO Fiona Hicks after just six months in the role.
Fortescue posts lower full-year profit, appoints new CEO
The news: Fortescue Metals Group has appointed a new CEO and posted a drop in full-year profit on the back of lower prices for its iron ore and a large impairment related to a new mine.
The numbers: Net profit for the year to 30 June was down 23% to USD4.8 billion ($7.5 billion), while underlying earnings were down 6% to USD10 billion. Revenue fell 3% to USD16.9 billion on the back of lower prices. The company will pay a final dividend of$1 a share, down from $1.21 a year ago.
The context: Australia’s third-biggest iron ore exporter said a 5% decline in prices was partly offset by higher shipments during the year, while cash costs were up 10% compared to the previous year.
Fortescue separately said Fiona Hicks will leave the company just six months after starting as chief executive. It did not disclose any reasons but said the exit has been “both friendly and mutual”. The company has announced chief operations officer Dino Otranto will take over as CEO of the mining business.
The source: ASX announcement
