SOUTHCORP LOOKS TO TURN CORNER AFTER A$1 BILLION LOSS

Published: 23 July, 2008

Southcorp's new chief executive John Ballard unveiled the company's worst ever set of full-year results last week, reporting a loss of A$992 million, compared to a profit of A$312 million in the previous year. The majority of the loss was the result of massive write downs (profit before significant items and SCARA was A$132 million) including $645 million in goodwill and a drop in the book value of the Rosemount name of $240 million. Ballard called the results unacceptable' and predicted a flat 2004'. But the City responded positively to the news, believing Ballard is starting to turn the company around, due to his recovery business improvement strategy, Project Veraison. I believe that the actions taken in the last four months represent the biggest shake-up in Southcorp's history,' he said. Of my 12 direct reports, seven are new appointments and in the next tier of Southcorp management 40% are new appointments.' Ballard's objectives for 2004 include improvement margins of 3-4% and a new UK marketing strategy.

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