Foster's chief quits amid gloomy profit forecast
Fosters has announced the resignation of its chief executive officer Trevor O'Hoy and a strategic review of its wine business after experiencing "disappointing" returns.
Chairman David Crawford says trading conditions have been tough and the continued strength of the Australian dollar has hit the company hard. The brewery announced a downgrade of expected net profits for fiscal 2008 to between $700 million and $715 million.
"The reality is we did not execute the Southcorp integration as well as we expected and operating conditions are now more challenging. We must also recognise and acknowledge that we paid too much to acquire wine assets."
Appointed CEO in March 2004, Trevor O'Hoy led Foster's through a period of significant structural and business change, including the acquisition of Southcorp Limited for $3.2 billion in 2005.
Crawford says the companies challenge is to drive improved financial returns from wine and to exploit the growth potential of its leading portfolio of global wine brands. "We have also instituted a broad ranging strategic review of our wine business focusing on where we compete today, how to capitalise on the growth characteristics of the category and the optimal structure and operation of our wine business into the future."
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