Toll Group streamlines business structure

Toll Group has announced a major restructure for its business, with the changes effective from July 1, 2014

Major logistics and freight specialist Toll Group has announced that, from July 1, 2014, it will "reduce its divisional reporting structure from six division to five, and change reporting lines for a number of business unit to better align contract logistics and network-based businesses".

The update will see Toll Domestic Forwarding gain Toll Express, Toll NQX and Toll Linehaul & Fleet Services, while Toll Liquids and Toll Transitions will fall under the banner of Toll Global Resources.

No changes have been flagged for Toll Global Express and Toll Global Forwarding, while Toll Intermodal will be incorporated into Toll Global Logistics and the group's Queensland freight forwarding business will be merged into Toll NQX.

Toll Group says the revised structure will reduce complexity and cost, reduce the overlapping of service offerings between divisions, promote collaboration across its various business units and, ultimately, make it easier for its customers to do business with Toll.

The changes will see Divisional Directors Paul Ebsworth and Wayne Hunt leave Toll later this year after a handover period, while Chris Pearce, current Divisional GM Customised Solutions, will assume the role of Divisional Director for Toll Global Logistics in Singapore and Mal Grimmond, current Divisional Director for Toll Specialised & Domestic Freight, will become Divisional Director for the expanded Toll Domestic Forwarding.

According to Toll Group Managing Director, Brian Kruger, the changes represent a natural progression in the business's evolution.

“This is a logical outcome given the progress we have made in our One Toll program and from our ongoing focus on returns," he said.

"We need to ensure that we are best placed to build on the key competitive advantages in our domestic network businesses, while also ensuring we are as aligned as possible with our customer needs in our contract logistics businesses.

"While cost reductions are not the key driver of these changes, we do expect to see meaningful benefits from this restructure together with other cost saving programs within Toll.

“We have strong businesses, particularly in Australia, but it is critical that in the current challenging market we reduce complexity and costs, improve our productivity and build on our strengths. This restructure will help mitigate near-term ongoing margin pressures as well as ensuring that we maximise the leverage that our company has to any improvements in the external environment."

Mr Kruger thanked Mr Ebsworth and Mr Hunt for their efforts at Toll Group.

“I would like to thank Paul and Wayne for the significant contributions they have made to Toll over more than two decades," he said.

"We have been very fortunate to have leaders of their calibre who have been able to adapt to challenging conditions while continuing to bring to life the core values that are so much a part of Toll’s culture.

“In February we said that we expected our underlying earnings before interest, tax and amortisation (EBITA) for the 2014 financial year to be broadly in line with last year and EBIT to be ahead of last year. This remains our expectation.

“Today’s restructure is expected to generate annual savings in the range of $10 to $12 million commencing in FY15. Further details of the costs and benefits of this restructure, along with restructuring and other cost saving initiatives across the Group, will be outlined in the full year results to be announced on 19 August 2014."

Toll Group streamlines business structure

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