Shareholders will vote on Asciano's board of directors this week following the release of the company’s financial report
By Sean Muir | October 9, 2012
Shareholders will vote on Asciano’s board of directors this week following the release of the company’s financial report, which showed a $242.7 million net profit, despite industrial unrest and more than $3 million in pay and incentives for the company’s CEO.
In a letter to shareholders, Asciano CEO John Mullen says the company’s 43 percent profit growth was achieved despite industrial turmoil, which included a backlash spurred by plans to axe 270 employees at Port Botany by mid-2014.
“While the finalisation of the Enterprise Agreement (EA) covering the Terminals and Logistics division took six months longer than expected, the agreement is now in place until June 30, 2015 and we are already implementing the efficiency improvements which have been built into the agreement,” Mullen writes.
Cuts to half of the company’s Port Botany workforce were announced earlier this year as part of plans to spend $348 million to redevelop and further automate operations at Port Botany’s container terminal, increasing capacity from 1.15 million to 1.6 million TEU per annum.
At the company’s annual general meeting this Thursday, shareholders will consider the company’s financial and remuneration report and will vote on the election of Ralph Waters as a new company director and the re-election of three of current directors, Geoff Kleeman, Robert Edgar and Malcolm Broomhead.
Shareholders will also consider a grant of rights for the 2013 financial year to CEO John Mullen, who was entitled to remuneration of $1.8 million and $1.3 million in short-term incentives for the 2012 financial year.
In its annual financial report for 2012, Asciano reported a 12 percent growth in volumes at its Terminals and Logistics division, with an increase in earnings before interest and taxes (EBIT) of 8.5 percent to $170 million.
Asciano says the underlying growth in revenue in the container terminals business was 13.5 percent, driven by an 11.8 percent increase in lifts and a 13.6 percent increase in TEUs over the period, reflecting a circa 5 percent market share gain.
Terminals and Logistics Director Alistair Field received $463,230 in total remuneration for the financial year.
The company’s Pacific National Rail division reported a 13.3 percent EBIT growth to $212.6 million, driven by a 9.8 percent increase in intermodal revenues and a 28.5 percent increase in bulk revenues.
“Intermodal growth was driven by strong demand for both Superfreighter and Express services into Western Australia and the commencement of the Foster’s volumes secured by Linfox and Toll,” the report says.
“While steel tonnage was up by only 1.3 percent, revenue increased by 8.1 percent, reflecting the change in the steel product mix and the greater distances being hauled.”
The report shows bulk revenue was driven by a 44 percent increase in export grain revenue from strong harvests in New South Wales and Victoria, resulting in an increase in the demand for train sets operating during the period.
“The Xstrata magnetite contract also had a positive impact on the twelve month period as well as the commencement of services for Toll and Linfox into Port Botany,” the report says.
The Bulk and Automotive Port Services division reported a 45 percent increase in EBIT off the back of restructure and a rollover of contracts, while Pacific National Coal – Asciano’s fastest growing division – reported an EBIT growth of 27 percent.
Tonnage hauled in Queensland for the 12 month period increased by 27.6 percent.
