CIMIC bounces back on new leadership
Shares in CIMIC Group are up eight per cent, a day after the international contractor named a new chief executive and announced a $1 billion full-year loss related to its its decision to exit the Middle East.
CIMIC announced on January 23 it was taking a $1.8 billion writedown related to its Middle East business, leading to its stock plummeting 19.9 per cent.
At 1253 AEDT on Wednesday CIMIC shares were up 8.1 per cent to $30.45.
CIMIC announced after Tuesday's close that Juan Santamaria would be promoted from managing director of CIMIC's CPB Contractors business to chief executive and managing director, from Wednesday.
Michael Wright, who had been chief executive and managing director since December 2017, has accepted a new leadership role within the group that will be disclosed later, CIMIC said.
CIMIC Group executive chairman Marcelino Fernandez Verdes called Mr Santamaria "a highly regarded leader with more than 18 years' experience managing diverse businesses within our sectors".
CIMIC also said that its decision to exit the Middle East would allow the company to focus its resources on its core markets in Australia, New Zealand the Asia Pacific.
Excluding the impact of its $1.8 billion writedown of its stake in BIC Contracting in the Middle East, CIMIC had a net profit for the 12 months to December 31 of $800 million, up 3 per cent from 2018.
It had revenue of $14.7 billion and $37.5 billion of work in hand, representing two years of business.
Projects it is working on include the Cross River Rail in Brisbane, the largest-ever infrastructure project in Queensland.
CIMIC forecast a net profit of $810 million to $850 million in 2020.
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