Aurizon Holdings Limited
(ASX:AZJ) is set to announce details of the company’s transformation program aimed at increasing efficiency, productivity and reducing costs.
The company is holding an investor briefing today in Sydney, where it will outline the conclusion of a company-wide review of its operations, including a right size and right fleet approach to match supply and demand in the most cost effective way.
Planned targets include a net reduction of the train fleet by 28 per cent, from 829 to 598 and a 12 per cent cut to the wagon fleet.
The reduction will result in an asset impairment of between $130 and $150 million, which will be recognised as an expense in the first half of 2014.
Aurizon has also conducted a review of strategic projects which has resulted in a $47 million impairment.
Aurizon generated a net profit of $446.9 million in fiscal 2013.
