Article: QR National cuts 900 jobs as profits rise

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QR National cuts 900 jobs as profits rise

QR National cuts 900 jobs as profits rise
August 23, 2012 - 10:15AM

Rail freight company QR National has confirmed it will axe 900 jobs as part of its restructure program.

The company confirmed the cuts today as it unveiled a 22 per cent rise in full year profit to $440.9 million in the year to June 30, from $360.9 million in 2010-11.

QR National also announced it would undertake an on-market buyback of up to 10 per cent of its shares.

The company's shares jumped on the news, rising as much as 15 cents, or 4.3 per cent, to $3.62 in early trade.

The company said, in a statement, it would accept about 750 voluntary redundancies as part of its ongoing restructure.

Combined with staff cuts already carried out this calendar year, the total number of jobs being axed will be 900 in the 12-month period, it said.

"The benefits of transformation and restructuring, including the strong expected uptake for the current voluntary redundancy program, will deliver sustainable cost savings and efficiencies in coming years," managing director Lance Hockridge said in a statement.

In June, the company had said more than 500 employees would be made redundant.

Queensland unions in July began legal action against QR National, saying the company had ignored a dispute over its restructure, and claiming the cuts could climb to between 900 and 1500.

At the time, Mr Hockridge complained of a legacy of bureaucracy from the company's former government ownership.

"Our cost base is too high when compared to competitors and rail industry peers," he said.

"While QR National continues to grow we need to better serve customers and improve our operating and financial performance if we are to safeguard an ongoing strong future for our company, our employees and shareholders."

QR National's also announced it will buy back up to 10 per cent of its shares.

AAP

Read more: http://www.brisbanetimes.com.au/business/earnings-season/qr-national-cuts-900-jobs-as-profits-rise-20120823-24nga.html