Economy

Treasury Wines boss ousted after write-down, shares fall 6%: Midday Roundup

Patrick Stafford /

Treasury Wine Estates chief executive David Dearie has announced he will leave the company immediately.

In a statement, the company said the board will look for a new chief executive after a major write-down of excess stock in the United States.

“Following the write-down of excess US inventory announced on July 15, the board has undertaken a review and concluded that now is the right time to look for a new CEO,” he said in a statement this morning.

“In particular, having established a solid platform since demerger, the board believes Treasury needs a leader with a stronger operational focus to deliver the company’s growth ambitions.”

Shares in the company have fallen 6.5% this morning after the announcement to $4.47.

In July the company announced it would destroy more than $35 million in excess stock.

News Corp announces small profit

News Corp has announced a 2.7% increase in annual revenue, while profit has increased as well to $US506 million.

The company announced the result overnight, which comes after the business recorded a loss of $US2.1 billion in the previous year.

The News Corp entity is made up of newspaper and publishing businesses. The company split last year, with entertainment holdings now a part of 21st Century Fox.

Shares fall as investors mull over US Fed decision

The Australian sharemarket has opened lower this morning, as investors around the world continue to discuss the ramifications of the United States’ Federal Reserve decision to continue its monetary stimulus activities.

The benchmark S&P/ASX200 index was down 44 points or 0.8% to 5231.8 at 12.00 AEST.

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Patrick Stafford

Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.

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