Australian heavy equipment rental company Emeco, which also operates in Canada, Chile and Indonesia said its CEO Ken Lewsey will step down and be replaced by chief operating officer Ian Testrow. Testrow will also become managing director, and his role will encompass both CEO and COO activities.
Also Emeco’s chief financial officer, Greg Hawkins, has been invited to join the Emeco board and become executive director, finance.
Testrow will focus his efforts on all customer-facing parts of the Emeco business, the company said, while Hawkins will concentrate on financial matters.
“The board asked Ken to refocus Emeco on its customers, review its strategy and, given the current circumstance in the mining services industry, significantly reduce costs,” said Emeco board chairman Alec Brennan. “He has made major contributions in all of these areas. In his work leading the Project Fit cost reduction initiative, it became clear to Ken that further management downsizing was required and, accordingly, he has decided that it is now time for him to step down.”
Lewsey agreed to be available to help the board in transition arrangements during the next few months.
The company posted a 21 percent revenue increase in the most recent quarter through the end of June, with revenue reaching A$65.3 million (about U.S. $47.9 million). Utilization rose to 74 percent compared to 50 percent in the year-ago quarter.
Also, in June Emeco ended merger talks with competitor Orionstone and abandoned plans to buy truck rental outfit Rentco.
