18 May

Business round up: BA appoints Ansett’s Eddington as new CEO

first_img Previous Article Next Article Business round up: BA appoints Ansett’s Eddington as new CEOOn 2 May 2000 in Personnel Today British Airways has appointed Rod Eddington, executive chairman ofAustralia’s number two airline Ansett and a leading executive in Rupert Murdoch’sNews Corporation, as its new chief executive, filling the gap left by lastmonth’s surprise departure of Bob Ayling. Eddington, who will take on the roleon 1 May, faces a tough challenge and one of his earliest tasks will be toannounce BA’s first pre-tax loss since privatisation 13 years ago.Profitability at BA, the world’s biggest international airline, has plunged inthe past two years and its operating results remain under pressure from excessindustry capacity. Analysts are forecasting a pre-tax loss of up to £125m forthe financial year to the end of March, down from a profit of £225m a yearearlier, with a forecast pre-tax loss before gains from disposals of as much as£385m. FT.comOn-line retailer restores Net faith with report Amazon.com, the largest on-line retailer, surprised analysts on Wednesdaynight by predicting it would report positive operating cash flow over theremaining three-quarters of this year, far sooner than expected. In its latesteffort to focus nervous investors’ attention on future profitability ratherthan on current losses, Amazon said its US books, music and video businesswould record pro forma operating profits for the full year. Chief financialofficer Warren Jenson noted that Amazon is “well placed to deliver on our2000 plans”, with $1bn of cash. FT.comProfits-drop for BAT after disappointing quarterBritish American Tobacco last week reported a steep drop in pre-tax profitsfollowing larger than expected exceptional costs as it revealed first-quarterfigures well below expectations. Pre-tax profits fell 29 per cent to £220m, farbelow analysts’ expectations of more than £400m. Exceptional charges relatingto the restructuring of Imasco, BAT’s Canadian subsidiary, and the acquisitionof SCA Tobacco in Japan, were higher than expected, reaching more than £230m.They included £80m from re-acquiring cigarette stock sold to SCAT before theacquisition, as well as £67m of costs relating to the Imasco restructure and£85m of goodwill amortisation. FT.com Comments are closed. Related posts:No related photos.last_img

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