New Owens chief outlines his plans for the future

By Graeme Kennedy

Friday 2nd November 2001

CHANGE MANAGEMENT EXPERIENCE: David Ritchie

New Owens Global Logistics CEO David Ritchie sees increasing growth and profitability for the company following a costly restructure and rebranding which consolidated the business from a confusion of separate divisions to a single operating unit.

The $5.6 million exercise cut 2000 group profits to $276,000 from $6.1 million the previous year. But the new-look Owens recovered to $4.6 million for 2001 and in the first four months of this financial year trading had exceeded the previous full first half with profit up more than 20%.

Mr Ritchie, who came to Owens after more than 20 years in the oil industry, said the restructure gave the company a much more solid base to work from while rebranding had provided a "much stronger face."

"There was quite a bit of diversity in the business with cargo, freight forwarding, shipping, containers and Hire Pool and we have got to see how they all fit together in the company portfolio and leverage strength by understanding how they can all work together.

"In the past, Owens was run as a series of divisions but now we have the opportunity to improve our performance with the restructure. There had been some movement to work the divisions more closely together, but we still have a way to go.

"We are tracking well with our work on loss-making units such as refrigerated cargoes and are looking to build growth and sustainable profitability - and I have no doubt that there are a number of potential growth opportunities for us."

Mr Ritchie graduated from Victoria University with a bachelor of commerce and administration in 1979 and joined Shell New Zealand's finance unit to work in analysis and marketing.

He was posted to a market development role in Malaysia in 1983 and after two years in marketing, advertising and commercial fuels in Wellington became Auckland branch and retail manager. He joined Shell UK in the early 1990s, helping restructure the company's commercial business which included rebranding and making acquisitions and disposals.

Mr Ritchie went to Australia in 1995, first as inland manager then logistics manager responsible for all terminals and distribution of Shell products while overseeing another major restructure. He became vice-president for marketing at Shell International in 1998, standardising the company's global marketing systems and establishing its first worldwide e-business operation.

"I believe I am bringing to Owens some fairly strong change management experience with a marketing bent. There is no doubt the company will benefit from working as a more cohesive group and my style is keeping people together, working with them to resolve issues."

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