Downer share price dips amid latest leadership turmoil

The company's chair is the latest executive to step down from the company.

| More on:
Businessman walks through exit door signalling resignation

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Downer share price is down 0.15% at the time of writing, trading at $3.275
  • Meanwhile, the company revealed the immediate resignation of chair Mark Chellew this morning
  • Chellew's resignation comes just days after that of chief financial officer Michael Ferguson and shortly after former-CEO Grant Fenn stepped down

The Downer EDI Ltd (ASX: DOW) share price has been jumping in and out of the green on Friday amid news another of its leaders is stepping down.

The infrastructure and mining services provider revealed the immediate resignation of chair Mark Chellew this morning.

It's just the latest in a string of resignations at the S&P/ASX 200 Index (ASX: XJO) giant and follows the release of notably disappointing half-year earnings.

The Downer share price is currently 0.15% lower, trading at $3.275. It hit a low of $3.23 earlier today – a 1.5% slump – and a high of $3.33 – a 1.5% gain.

For comparison, the ASX 200 has lifted 0.32% right now.

Let's take a closer look at the latest executive exit at Downer.

Downer share price trades lower on Friday

The Downer share price is on a rollercoaster amid news Chellew will step down immediately after navigating what the company called "a challenging period".

Deputy chair Mark Menhinnitt is stepping up to the role of acting chair on Chellew's exit.

It comes just days after the resignation of chief financial officer Michael Ferguson was announced. Ferguson will stay with the company for another six months as his replacement is appointed and his responsibilities transitioned.

Not to mention, former CEO Grant Fenn stepped away from his role last month. Fenn's retirement was announced in December, with then-chief operating officer Peter Tompkins succeeding him.

Thanking Fenn for his contribution to the company in December, Chellew said:

Grant has been the driving force in reshaping this business. He has provided strong leadership during often difficult times.

Speaking of difficult times, the Downer share price plunged 24% on Monday when the company revealed yet another profit downgrade. It came amid a lost utilities contract and wet weather impacts.

It now forecasts it will post between $170 million and $190 million of underlying profit after tax and before amortisation of acquired intangible assets (NPATA) for the financial year 2023.

The company posted $225.3 million of underlying NPATA last fiscal year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Bellevue Gold, Mesoblast, Pilbara Minerals, and Wesfarmers shares are dropping today

These shares are ending the week deep in the red. What's going on?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why AGL, CBA, Deep Yellow, and Megaport shares are sinking today

These shares are falling more than most today. What's going on?

Read more »

A wide-eyed man peers out from a small gap in his black zipped jumper conveying fear over the weak Zip share price
BNPL shares

Why did the Zip share price just crash 9%?

Investors seem to be singling Zip out for punishment today...

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Share Fallers

Why Capricorn Metals, Insignia, Sayona Mining, and Southern Cross Gold shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Data#3, Elders, Karoon Energy, and Tyro shares are falling today

These shares are having a tough session on Tuesday. But why?

Read more »

A man in a suit looks sad as oil is spilled from a barrel.
Energy Shares

This $1 billion ASX 200 energy stock is diving 7%! Here's why

This ASX energy company is taking a beating on Tuesday. But why?

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why did the Appen share price crash 15% today?

Appen shares remain up more than 250% this year.

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Boss Energy, Digico, Platinum, and Resolute shares are dropping today

These shares are starting the week in the red. But why?

Read more »