By Robb M. Stewart
MELBOURNE, Australia--Industrial explosives manufacturer Orica
Ltd. (ORI.AU) has appointed a former BHP Billiton Ltd. (BHP.AU)
senior executive, Alberto Calderon, as its interim chief
executive.
Mr. Calderon, a nonexecutive director on Orica's board since
August 2013 and a former chief executive of BHP's aluminum, nickel
and corporate development, will replace Ian Smith with immediate
effect, Orica said Monday.
The company last week said Mr. Smith had agreed to step down
after three years in the role. At the time, it said an
international search for a successor with a "different management
style" was underway but it didn't lay out a specific succession
timeframe.
Orica said Monday that in the interest of minimizing further
distractions and to enable the company to move on, Mr. Smith would
leave immediately. The search for a permanent successor continued,
it added.
"The importance of ensuring stability and operational continuity
at Orica has been at the forefront of my discussions with the
board," Mr. Calderon said in a statement.
Orica postponed an investor briefing scheduled for Monday. It
said global markets remained volatile and uncertain, and as a
result profit guidance for the financial years was difficult to
provide.
It reaffirmed guidance for global explosives volumes to be
between 3.8 million and 4 million metric tons this year, with
volumes lower in Australia but higher in the Americas.
Operating costs were still expected to fall by between 140
million Australian dollars (US$109 million) to A$170 million in
2015 as it puts in place a restructuring plan expected to cost
A$100 million-A$120 million. The company said it also still
expected to buy back up to A$400 million of its own shares over the
next 12 months.
Mr. Calderon stepped down as a BHP executive in 2013 amid a
sweeping overall of the resources company's management team by the
incoming CEO, Andrew Mackenzie. He had previously been chief
commercial officer at BHP between 2007 and 2009. Before his
departure he had been suggested by investors and analysts as one of
a small handful of potential replacements to former BHP CEO Marius
Kloppers.
Write to Robb M. Stewart at robb.stewart@wsj.com
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