It seems many executives resign for “personal reasons”, but the broker is sure that this was this case with Read.
“We note that Mr Read has resigned for personal reasons,” Goldman said.
“While the specific reasons have not been disclosed, we understand that they are unrelated to company or individual performance.”
Outgoing CFO Wigan will continue on the board for an additional 2-3 months while former Sedgman managing director and founding partner Russell Kempnich takes up executive responsibilities once again.
While Goldman expects some short-term hits to Sedgman’s share price, the broker said the fundamental factors supporting the stock have not changed.
Sedgman’s annual general meeting is coming up on November 24.
A coal handling and preparation plant specialist, Sedgman recently won the Large Services award at the Premier of Queensland’s Export Awards 2010.
Premier Anna Bligh lavished praise on the company at the time.
“Growing from less than 150 staff in 2002 to more than 750 and rising, Sedgman Limited is a Queensland export success story,” she said.
Sedgman shares closed down 3.8% to $1.88 yesterday, 10% down since it announced Read’s resignation on Friday morning.