Thursday, October 18, 2012

Hills collapse, Fielders new CEO Video.


Hills have a shocker - Fielders start afresh!

Hills Collapse!

How do you start a review on a day that saw Hills shares take a nose dive on the back of Q3 results that would shake any company in todays market. What happened? Well from the comments of Ted Pretty today it seems that the manufacturing sectors and building products have seen some large downturns in  turnover and margins, Ted stated in the ASX release today:
We will accelerate our program to drive out costs across our manufacturing businesses
  The onus now is on the Board of directors and the senior management team to reverse this trend and quickly. So lets look at the board and senior management in order of their time at Hills Industries.
Board of Directors:
  1. Jennifer Helen Hill-Ling LLB, FAICD Chairman, Appointed Director in August 1985. Appointed Deputy Chairman in June 2004. Appointed Chairman 28 October 2005.
  2. Edward (Ted) Pretty BA LLB (Hons) Managing Director, Appointed as Group Managing Director and Chief Executive Officer 3 September 2012.
There are 5 other Independent Non-Executive Directors appointed with 2 appointed in 2003, 2 in 2010 and one other which is unknown. So overall you can take out all the recent appointments since the GFC and you only have 3 left. But one has been on the board for nearly 27 years.

Jennifer Helen Hill-Ling should face the shareholders meeting AGM also and explain this current mess - to much downturn over an extremely long period of time has to be accounted for. Jennifer, with approximately 12% indirect and direct share owernship of Hills has to show the importance of saving this 50 year history of Hills on the ASX. (Declaration - The Roofer does own shares in Hills).

Jennifer Helen Hill-Ling - in a corner today also!

The other two have been directors only for 9 years. The shareholders meeting will be coming up and Mr. Ted Pretty has to face the music - but in theory why did not he know of this (Q3) third quarter downturn? He's just lost a mint on his own personnel share holding of Hills he recently purchased. Now look at Hills performance over the last 5 years:
5 Year ASX performance.
Now lets look at Hills over the last 3 months.
3 Month Hills performance.
Ted has only just arrived and has to face this ASX share market collapse in a very short period of time with a board of directors that should have had an insight into this Q3 collapse.  Their shares lost over 35% in one 8 hour period. Surely someone in Hills knew of this downturn prior to this announcement.

Meet the new Fielders CEO on video here:

The new Fielders CEO has been announced and Mr. Chris Stathy:

Fielders are proud to announce the appointment of Chris Stathy, OAM into the role of CEO Fielders Australia, effective 1 December 2012. This follows Keith Middleton’s recent resignation.
Chris is a highly respected and experienced executive manager and company director with a proven track record in national and global markets across various industry sectors. Chris joins us from Philmac Pty Ltd, where he has held the position of Chief Executive Officer since 2003. Under his leadership Philmac expanded both in Australia and overseas.
Chris is a Board member and former Chairman of the Water Industry Alliance in South Australia, a Director of the Plastics Industry Pipe Association of Australia Limited and a past member of the South Australian Manufacturing Consultative Council. He is also a past President of the Engineering Employers Association of SA and was a key driver in bringing about the merger of EEASA with the Australian Industry Group, of which he is a State Councillor and a member of the National Executive. He is also a Fellow of the Australian Institute of Company Directors, the National Institute of Accountants and the Australian Marketing Institute, awarded the Medal of the Order of Australia (OAM) for his services to the industry in the 2012 honours list.
Please join us in welcoming Chris to his new role and to the Senior Leadership Team at Fielders.
This is a new area for Chris and will be a steep learning curve on manufacturing time tables. Standard products ordered one day for delivery the next. Not just stock replenishment as in the irrigation and water pipe industry. Flashings custom made every day to suit the needs of roofers, patio builders and shed suppliers all over Australia is not an easy task to manage. I wish him luck and think he has the credentials to turn Fielders around - because the alternative is not good.

I thought I'd let all the Fielders employees look at Chris during a earlier interview regarding self improvement as it will take some time before he has the opportunity to greet all the Fielders staff.

  

Welcome to the world of rollforming Chris.

On another note the following occurred on the ASX today:
BlueScope up 2.00% to 51 cents.
Fletcher Building up 1.54% to $5.95

4 comments:

  1. The new Fielders strategy is to make money? - wow they might have a rocket scientist at the helm! Will see how long it lasts and how many staff get made redundant.
    All I can say is good luck Chris - your going to need it!

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  2. could get made redundant himself in 6 months to a year

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  3. All of the many talented top managers who made Hills great have long gone.

    Former MD David Simmons, architect of Hills' spectacular successes in the 1990s and up to 2008 when he gave up in frustration at the interference from the board, must be shattered when he looks at what has become of this once great company.

    Hills have a new MD, now they need a new chairman and a new board.

    The chairman and the board should resign, accountability starts at the top.

    Unfortunately the antique Hills shareholders are more interested in what sort of sandwiches are served at the AGM
    than challenging the board on the prolonged mismanagement and decline of their company. Jenny Hill-Ling will still be there in 20 years and the shares will probably be down to 10 cents.

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  4. Chris Stathey must be hoping that there will be building stimulus packages from governments all over Australia like the $8500 and $15,000 grants annnounced in SA last week to kickstart the battered homebuilding industry.

    Stimulus grants plus lower interest rates, will they work and will they save Hills ?.

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