aristocrat poised to axe more executives

Aristocrat poised to axe more executives
Mar 31
Ben Power

Poker machine company Aristocrat Leisure could announce more executive departures after a review of its North American business, which was prompted by its shock profit warning earlier this year.

On Friday chairman John Ducker said the company was preparing a response after a special board meeting a day earlier, at which directors were briefed on an investigation into the underperforming US business.

Mr Ducker declined to give details, saying a statement would be made this week. "We will advise the market as soon as a position is reached," he said.

But he added that the announcement "includes completion of people going".


Mr Ducker would not comment on the board's position in relation to chief executive Des Randall, though Mr Randall has previously said he would not be leaving the company.

US president Mark Newburg has already left the group, as has the US operation's chief financial officer, Ron Rowan, and the vice-president of sales, David Lucchese.

Mr Newburg was replaced by Gavin Isaacs, who was managing director of the European businesses for the past year. The head of European sales, Henry Krawczyk, took Mr Isaacs' previous role.

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Aristocrat's shares halved in February, after it said it would not meet its $109 million profit guidance. It blamed a failed South American contract for the shortfall, but then admitted its US operations had also fallen short of expectations, with serious problems including margin deterioration.

The release prompted an inquiry from the Australian Securities and Investments Commission and the company launched a full investigation into the US operation.