AURIZON TO CUT HUNDREDS MORE STAFF AFTER 88% PROFIT DROP
15 August 2016, Written by James Perkins
FALLING freight volumes and asset write-offs hurt Aurizon in FY16 (ASX: AZJ), and the railway operator will cut hundreds of staff in the coming year to improve the performance of the business.
In full-year results released today, the company reported Underlying EBIT was down 10 per cent to $871 million, while underlying profit sank 16 per cent to $510 million. Revenue declined 9 per cent to $3.46 billion. Statutory NPAT reduced by 88 per cent compared to the previous year, due to $528 million in asset impairments; the largest being a $226 million investment in Aquila Resources, in addition to $177 million in rolling stock and $125 million in other strategic projects.
Aurizon bought and cancelled $301 million in its own shares in FY16, but has stopped the buyback unfinished to "manage near term balance sheet capacity".