UK Contractor Carillion Names New CEO to Reverse 2017 Slide
U.K.-based services and construction company Carillion plc. has named Andrew Davies as CEO following the July resignation of former chief executive Richard Howson in the wake of poor financial results. Davies “brings executive, strategic, turn around and leadership skills,” says the company. Set to join next April, he now is CEO of privately-owned UK contractor Wates Group Ltd. He also was a defense industry executive.
Keith Cochrane continues as interim CEO. He replaced Howson after the company reported losses of $1.1 billion on contracts in the UK, Canada and the Middle East. In the first half of 2017, Carillion reported flat sales of $3.3 billion and a 40% drop in underlying profit.
In an effort to sell nearly $400 million of non-core assets by the end of next year, the company has begun selling its interests in its UK healthcare facilities management business and continues disposals of Canadian assets.
Carillion’s plight marks a dramatic reversal from the same time three years ago when it offered to merge with then-ailing contractor Balfour Beatty. That firm rebuffed the offer and has since substantially repaired its business under new CEO Leo Quinn.
John Elliott, managing director of U.K.-based tunneling design specialist Alan Auld Group, will join global engineer Golder Associates Corp., Palm Beach Gardens, Fla., as a principal, following the latter firm's completed purchase of the former, that is set for mid-November. Auld, with offices also in Canada and the U.S., provides specialized design and construction for underground structures and complex shafts and tunnels.
A Golder spokeswoman says the deal "will play a key role in advancing our tunneling strategy globally," and in further expediting the firm's bottom-line repair. Golder posted losses for 2014 and 2015, but the spokeswoman says it returned to profitability last year, with 12% margins on net revenue. The firm ranks at No. 40 on ENR's list of The Top 150 Global Design firms, reporting $897.2 million in global worldwide revenue last year. She says "2017 is running at higher profitability today and is projected to surpass 2016 numbers."
The National Academy of Construction, whose members are recognized for leadership in various industry sectors, inducted 26 new members at its Oct. 26 meeting in Washington, D.C. NAC has about 200 members. Inductee names are listed on the organization’s website, see page 5.
The Weitz Co., Des Moines, has elevated Chief Operating Officer Kevin McClain to president and CEO. He succeeds Leonard W. Martling, who retired. McClain has been at Weitz for 18 years. Egypt- based Orascom Construction Ltd. acquired the firm in 2012. Weitz ranks at No. 70 on ENR's list of The Top 400 Contractors, with $1.15 billion reported in 2016 revenue.
In another planned management succession, Jacksonville, Fla.-based design-build firm Haskell has elevated Chief Operating Officer Jim O'Leary to president, succeeding Steve Halverson, who remains chairman and CEO. The firm also elevated John Paul Sáenz from group presidnet to COO and executive vice president. O’Leary has been with Haskell since 1989; Sáenz joined the firm in 1997 and is credited with establishing the firm in Latin America. Haskell ranks at No. 107 on ENR's list of The Top 400 Contractors, reporting about $794 million in 2016 revenue.
Ashley Smith, president of Smith-Midland Corp., a Midland, Va., family-owned concrete precasting firm, was named president of the National Precast Concrete Association on Oct. 14.
The Intelligent Transportation Society of America, an advocacy group for development and deployment of intelligent transportation technologies, has named Shailen Bhatt as president & CEO. He had been executive director of the Colorado Dept. of Transportation.
Louis Berger has hired former Washington, D.C., Dept. of Transportation Director Leif Dormsjo as senior vice president for infrastructure asset management based in that city. He will oversee management of the practice that operates and maintains a range of public and private transportation facilities and infrastructure assets for U.S. clients, including Florida's Turnpike facilities and the SH-130 toll road in Texas. Dormsjo also previously served as deputy secretary of the Maryland Dept. of Transportation,