Orica Names Former BHP Executive Alberto Calderon as Interim CEO

   By Robb M. Stewart 
 

MELBOURNE, Australia--Industrial explosives manufacturer Orica Ltd. (ORI.AU) has appointed a former BHP Billiton Ltd. (BHP.AU) senior executive, Alberto Calderon, as its interim chief executive.

Mr. Calderon, a nonexecutive director on Orica's board since August 2013 and a former chief executive of BHP's aluminum, nickel and corporate development, will replace Ian Smith with immediate effect, Orica said Monday.

The company last week said Mr. Smith had agreed to step down after three years in the role. At the time, it said an international search for a successor with a "different management style" was underway but it didn't lay out a specific succession timeframe.

Orica said Monday that in the interest of minimizing further distractions and to enable the company to move on, Mr. Smith would leave immediately. The search for a permanent successor continued, it added.

"The importance of ensuring stability and operational continuity at Orica has been at the forefront of my discussions with the board," Mr. Calderon said in a statement.

Orica postponed an investor briefing scheduled for Monday. It said global markets remained volatile and uncertain, and as a result profit guidance for the financial years was difficult to provide.

It reaffirmed guidance for global explosives volumes to be between 3.8 million and 4 million metric tons this year, with volumes lower in Australia but higher in the Americas.

Operating costs were still expected to fall by between 140 million Australian dollars (US$109 million) to A$170 million in 2015 as it puts in place a restructuring plan expected to cost A$100 million-A$120 million. The company said it also still expected to buy back up to A$400 million of its own shares over the next 12 months.

Mr. Calderon stepped down as a BHP executive in 2013 amid a sweeping overall of the resources company's management team by the incoming CEO, Andrew Mackenzie. He had previously been chief commercial officer at BHP between 2007 and 2009. Before his departure he had been suggested by investors and analysts as one of a small handful of potential replacements to former BHP CEO Marius Kloppers.

Write to Robb M. Stewart at [e-mail]

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