Gilbertson to run BHP-Billiton


Gilbertson will become chief executive of BHP Billiton on July 1

By Geoff Hiscock
CNN Asia Business Editor

SYDNEY, Australia (CNN) -- Former Billiton chief executive Brian Gilbertson will move into the top job at merged resources giant BHP Billiton from July 1, the company said Thursday.

Gilbertson replaces Paul Anderson as CEO and managing director of the dual-listed company, which was formed in a $28 billion merger completed in July last year.

Gilbertson was designated as Anderson's successor at the time of the merger, but the handover comes earlier than most observers expected.

The view in the market was that Anderson would step down about September. Before Thursday's announcement, BHP Billiton shares had closed in Australia down 30 cents or 2.76 percent at A$10.55.

The announcement of the change by BHP Billiton chairman Don Argus came after the company on Wednesday delivered a disappointing third-quarter result, with net profit down 33 percent to $406 million (Aust $755 million) for the three months ending March 31.

Revenue was down 8 percent to $4.28 billion (A$8 billion).

Anderson described the result as "sound" in the face of difficult market conditions.

His deputy Gilbertson warned that despite signs of a modest improvement in the global economic environment, there were still concerns about the strength and sustainability of the recovery.

End of merger transition

Argus said on Thursday the Gilbertson-Anderson handover and other board changes marked the end of the transition associated with the merger.

Anderson, 57, has been running the diversified resources group for about three and a half years. He joined BHP as CEO in December 1998 from U.S.-based Duke Energy, where he was president and chief operating officer.

Argus said Anderson would retire on July 1 but would stay on the board of both BHP Billiton Limited and BHP Billiton plc until the completion of the annual general meetings in Melbourne on October 25 and in London on November 4.

Argus said the board would be cut to 12 directors, including three executive directors. To achieve this, directors Ben Alberts, John Conde, Derek Keys and Barry Romeril would step down at the end of June.

Directors John Jackson and John Ralph will retire at the next annual general meeting when a new non-executive director has or will have been appointed, Argus added.