Deutsche Bank report:
New CEO to start immediately
AIO today announced the appointment of John Mullen as the new CEO of the company, to commence in the role on 14 Feb 2011. He was previously Global CEO of DHL Express (from 2006 to 2009; Joint CEO in 2005). Before that he was CEO of DHL Express Asia Pacific and held senior positions with the TNT Group for 10 years. Mr Mullen is also currently a Non-Executive Director of Telstra, Brambles and MAp Group - he is expected to remain a director of Telstra following his appointment as CEO of AIO.
Announcement a surprise
For us, the timing of the announcement is unexpected but could nonetheless be viewed positively given John Mullen's extensive international experience in transport and logistics. Given his international credentials, his appointment is also likely to appeal to international investors. It is too early to tell at this stage whether the appointment could signal any significant change in strategy.
Existing CEO to remain until mid-year
Under his contract, the existing CEO Mark Rowsthorn will remain an employee of AIO until 15 Jun 2011 and will assist with transitional arrangement as required.
Future direction
On this afternoon's conference call with investors, the Chairman indicated that the immediate focus of the company will continue to be:
(1) Delivering on the existing assets, with a focus on maximising return on
assets; and
(2) Growing total shareholder return to investors.
The next phase of growth for the company is expected to extend beyond coal haulage, but no further details were provided at this stage.
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