Downer hires former BHP boss as CEO

CONSTRUCTION and engineering giant Downer EDI has appointed a former BHP senior executive Geoff Knox as its next chief executive, effective from 1 February.

CONSTRUCTION and engineering giant Downer EDI has appointed a former BHP senior executive Geoff Knox as its next chief executive, effective from 1 February.

Mr Knox will succeed Brent Waldron who was appointed interim chief executive in August after a profit downgrade forced out Stephen Gillies who had been at the helm for 11 years.

Mr Knox is the global executive director of engineering consultancy Hatchcos Holdings. He is also a former president of BHP engineering and vice-president of BHP project management.

"We've got a star recruit,'' Downer chairman Barry O'Callaghan told AAP today.

"He is the man who likes a challenge and has a great track record and we believe we couldn't have found a better person,'' he said.

Mr O'Callaghan said the board conducted an extensive global search to find a leader who could deliver strategic outcomes, who was open and inclusive, and experienced in the contractual environment in which the company operated.

"Mr Knox to our delight satisfies everyone of those,'' Mr O'Callaghan said

He said Mr Knox's contract was for at least five years.

Downer disappointed investors this year when it reported a net profit of $101.5 million for 2006/07, well below its guidance of $160 million.

The company was forced to make a $160 million provision after reporting a $25 million annual net loss in 2005/06.

The writedown covered a contract dispute with Iluka Resources over the delayed completion of the Douglas mineral sands project in Victoria.

Last month Downer downgraded its earnings before interest and tax (EBIT) target for this financial year after experiencing challenges in its mining division.

EBIT is expected to be in line with 2006-07's $280 million, having revised its forecast growth in the low double-digits in August.

Downer, which is undertaking a major review of its operations with the help of brokerage UBS, said today that the final decisions regarding the review would be announced after Mr Knox commences duties in February.