Nufarm targets $100 million cost cuts as Doug Rathbone departs

Nufarm has launched a $100 million cost cutting program as its shakes up its management board following the resignation of boss Doug Rathbone.

Nufarm has appointed commercial operations executive Greg Hunt as the acting chief executive of the agribusiness, in response to Mr Rathbone stepping down after 15 years of leading the company.

Nufarm says a global search for a replacement chief executive has begun, as Mr Rathbone ends his 41-year long association with the agricultural chemical company.

Nufarm chairman, Donald McGaucie also said the group would pursue a $100 million cost reduction program that it had been in planning since late last year. This, he said, would be coupled with a separate aggressive plan to reduce working capital to meet a target of 40 per cent average net working capital to sales by the end of the 2016 financial year.

Nufarm went into a trading halt citing a management change, but gave no details.

Mr Hunt, currently group executive for commercial operations, has been appointed chief operating officer of the group, and will be acting chief executive in place of Mr Rathbone.

Mr Rathbone has sold down his stake in recent years from as much as 18 per cent to around 1.3 per cent but has retained a strong management role in what has long been regarded as a family company.

That changed recently when the company took on a large offshore shareholder in Japanese trading house Sumitomo which now owns 23 per cent of the company.

“Doug believes that new leadership can bring a fresh perspective and energy to driving important change in the business,” Mr McGauchie said.

Mr Rathbone said he would leave Nufarm on a sound financial footing, and leaves with a termination benefit of more than $1.6 million, plus statutory entitlements.

In December, Nufarm said it expected group earnings before interest and tax to rise this financial year, despite poor seasonal conditions in Australia.

At the time, Mr Rathbone said that overall, the company’s first-quarter performance was ahead of last financial year.