Global Industries Notes 3Q Net Loss, CEO Resignation
Global Industries announced that B.K. Chin, Chairman of the Board and Chief Executive Officer since 2006, has resigned effective immediately. Current board member John A. Clerico has been appointed Executive Chairman of the Board and will serve as interim Chief Executive Officer until a permanent CEO is hired. In addition, William J. Dore, the Company's founder and former CEO, will rejoin the Company's Board of Directors.
The Company also announced that they expect to report a third quarter 2008 net loss of approximately 45 cents to 50 cents per diluted share. The Company continued to experience significant adverse impacts on gross profits during the quarter on certain Middle East projects due to productivity and logistical issues. Lower than expected revenues also contributed to the third quarter earnings shortfall, as did lower than expected vessel utilization in North America.
Commenting on the announcement, Clerico said, "The Board of Directors believes these management changes are essential in order to address Global's current operating challenges, improve financial performance and to accelerate implementation of the Company's strategic plan. Working with the Company's management team, I am committed to taking all actions necessary to return Global to profitability as soon as possible. I am confident that we can and will do so. I am especially pleased that our founder and longtime leader, Mr. Bill Dore, has agreed to return to our Board to assist in these efforts. His knowledge and successful experience in the offshore oil services industry will be of considerable value to us as we move forward. We want to thank B. K. Chin for his hard work and dedication during his tenure at Global. B.K. has made a number of significant contributions to the Company, especially in the development of our business strategy and the upgrading of our fleet of vessels. We wish B.K. well in his future endeavors." Clerico also noted that "the Board will begin a process to identify candidates to fill the permanent CEO position."
John A. Clerico has been a member of Global's Board since February 2006 and is the Chairman of Chartmark Investments, Inc., a company he founded in 2001. Clerico previously served as Executive Vice President and Chief Financial Officer of Praxair, Inc. From 1999-2000, Clerico was a member of the Office of the Chairman at Praxair and also had leadership responsibility for the company's operations in Europe and South America. Prior to that, Clerico was an executive with Union Carbide Company where he served as Treasurer and Chief Financial Officer.
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