Wednesday, 07 November 2012 10:06
Macmahon Holdings has apologised to shareholders for its recent earnings downgrade, as the mining contractor undertakes a review of costs and construction projects.
Macmahon announced the downgrade last month, followed by the departure of chief executive Nick Bowen last week, as it reviews its Hope Downs 4 Rail Earthworks contract in Western Australia.
Mr Bowen is to be replaced by chief operating officer Ross Carroll.
Macmahon Holdings chairman Ken Scott-Mackenzie on Tuesday said the board shared the extreme disappointment of many shareholders as it focused on rebuilding market confidence.
"I would like to apologise to you for the recent earnings downgrade and the effect this has had on the value of your investment in Macmahon," Mr Scott-Mackenzie said.
The apology comes less than a week after the company called in lawyers to investigate a series of fake internal emails suggesting the mining contractor had received a takeover approach from a Chinese company.
It also comes three days before Mr Carroll will address the company's annual general meeting in Perth on 9 November.
Mr Carroll is conducting a review of Macmahon's capital and operating expenditure as it evaluates its business mix and risk profile.
In a separate statement, Mr Scott-Mackenzie said Mr Carroll had a thorough knowledge of all aspects of Macmahon's business.
"He is well credentialled to lead the company as we work to rebuild value for our shareholders," Mr Scott-Mackenzie said.
He said Mr Bowen's total pay packet had been 19.2 per cent higher than the package negotiated with Mr Carroll.
He said Mr Carroll's new salary would be further reduced by 10 per cent for the remainder of the 2013 financial year.
For the latest news click here
For the latest Drive features click here
For the latest Travel features click here
For the latest Food & Drink features click here
Follow myresources.com.au on Twitter