(Reuters) -Australia’s Aurizon Holdings is looking to potentially cut 200 full-time job roles across its business after an ongoing assessment of its non-operational cost base, the rail freight operator said post trading hours on Tuesday. The firm had mentioned in its half-year results in February that it would implement “additional efficiency improvements” during the current […]
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Australia’s Aurizon flags 200 job cuts, potential hit to full-year earnings
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(Reuters) -Australia’s Aurizon Holdings is looking to potentially cut 200 full-time job roles across its business after an ongoing assessment of its non-operational cost base, the rail freight operator said post trading hours on Tuesday.
The firm had mentioned in its half-year results in February that it would implement “additional efficiency improvements” during the current calendar year.
It currently has over 6,000 employees, according to its website.
Aurizon’s half-year results missed market estimates, with an underlying net profit after tax of A$205 million ($132.27 million) coming below a Visible Alpha consensus of A$215.2 million.
It also mentioned that it is owed around A$50 million in aggregate from two of its bulk customers, and another A$15 million from delay charges and handling services for another bulk customer.
The company still expects its group earnings before interest, tax, depreciation and amortisation (EBITDA) for fiscal 2025 to be at the lower end of the A$1.66 billion-A$1.74 billion range it forecast earlier.
Depending on the outcome of the money it is owed, Aurizon said its provision for impairment of receivables for the fiscal year could rise, likely impacting its EBITDA forecast.
Shares of Australia’s largest rail freight operator closed 3.2% lower at A$3.00 per share at 0600 GMT.
($1 = 1.5499 Australian dollars)
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Janane Venkatraman)