News: Asciano axing 500 jobs to save costs

.

Asciano Limited (ASX:AIO) is ramping up its acceleration of two new business improvement programs. The rail freight operator says the changes will result in about 500 job losses as is targets cost reductions of $90 million in the following financial year. 

 

Asciano’s original five-year business improvement program announced in fiscal 2011 has been doubled to $300 million in savings by fiscal 2016.

 

The business improvement initiatives are expected to help drive higher earnings before interest and tax in fiscal 2015 despite relatively low volume growth across the business.

 

Asciano has confirmed its underlying net profit after tax is expected to show low single digit growth in fiscal 2014. 

 

Asciano reported a net profit of $190 million in the first half of the 2014 financial year.