Australia's CIMIC Group <CIM.AX> Chief Executive Officer Michael Wright stepped down on Tuesday, as the firm booked a A$1.8 billion ($1.21 billion) one-off charge from its soured Middle East investment and swung to a full year net loss.
The engineering contractor reported a net loss after tax of A$1.04 billion, compared with a profit of A$778.5 million a year ago, hurt by the one-time charge it took by selling its stake in its Middle East unit.
CIMIC last month said it was planning to sell its 45% interest in BIC Contracting due to an "accelerated deterioration" of market conditions in the region.
The company forecast net profit after tax for fiscal 2020 in the range of A$810 million to A850 million, owing to a strong pipeline of new construction work.
Excluding the impact from the divestment, net profit after tax rose 3% to A$800.3 million, in line with the company's outlook.
In a separate statement, the firm said that Wright, who has been at the helm since 2017, will be stepping down as chief executive but would remain in the firm in a 'leadership' role.
Juan Santamaria, managing director of division CPB Contractors, will take on the role of chief executive from Feb. 5.
Shares of the firm slumped 11.6% in January, while parent companies Germany's Hochtief <HOTG.DE> and Spain's ACS <ACS.MC> fell 8% and 15.8%, respectively, owing to CIMIC's divestment plans.
The results were reported after market close, with CIMIC shares down 1.2% on the day against a rising broader market <.AXJO>.
(Reporting by Sameer Manekar in Bengaluru; Editing by Christian Schmollinger & Shri Navaratnam)
