CSR names former Big W chief Julie Coates as new CEO

CSR chairman John Gillam has brushed off the pressure on the company's shareprice as he announced former Big W boss Julie Coates would take over as the construction materials giant's new chief executive.

Ms Coates will join the company in September after leaving her position as managing director of food manufacturer Goodman Fielder and taking the reins from retiring chief Rob Sindel, who will remain in charge until September 2.

All smiles: incoming CSR chief Julie Coates with chairman John Gillam.Credit: Karl Schwerdtfeger

The leadership transition comes at a critical juncture for the company, which saw its share price collapse 53 per cent in the space of seven months last year, from a peak of $5.74 in May to a low of $2.69 in December.

The market’s response to the appointment on Thursday was muted, with CSR’s shares trading up 0.3 per cent to $3.37 on the news.

Mr Gillam was bullish on the company’s future, saying the market got it wrong by wiping more than half of CSR’s value last year.

“Our view around the executive team and the board table is that the market overreacted to how the market was interpreting the wider market forces, versus our core business's capabilities," he said.

For a lot of people they were thinking the world had dropped off a cliff and we might have gone with it.

John Gillam

"For a lot of people they were thinking the world had dropped off a cliff and we might have gone with it, but that just simply isn't the case. That explains why there's been a rebuild [in the share price]. We believe there's more value to be grown.

"We're making sure that CSR is prepared for the best trading we can do and the conditions that prevail, and doing that in a way that sets us up for the long-term success that our strategy is building us towards."

Following last week’s full-year results, which revealed a major profit slump, Morgan Stanley analysts predicted CSR shares were likely to fall again in the coming year.

"Looking forward, Australian housing weakness, cost pressures for aluminium and management uncertainty provide too many headwinds," equity analyst Andrew Scott said in a note to investors.

While the management uncertainty has been resolved with Ms Coates’ appointment, Mr Scott warned the broader environment "gets tougher from here".

Mr Gillam said he was “excited” about the appointment, which the company hopes will continue the company's revival since the turn of the year.

"We're delighted that someone of her quality … wants to join us," Mr Gillam said.

"She's got a unique combination of skills that are ideally suited for the core of CSR today, and where we believe value can be created and built upon in the future."

Ms Coates, who is a non-executive director at Coca Cola Amatil and worked at Woolworths for 12 years prior to her stint at Goodman Fielder, joins a short list of female CEOs at the helm of the top-200 ASX companies.

Mr Gillam said the rationale for selecting Ms Coates was simple.

"She's demonstrably the best person for the job, end of story. She has a really strong track record."

Mr Gillam reiterated Mr Sindel’s comments about energy policy uncertainty that continues to plague the business community, but declined to comment on the two parties’ policies leading into the election on Saturday.

"Whomever is in government, energy policy is a really pressing issue," Mr Gillam said.