Anglo American chief executive Mark Cutifani contends he will double profitability once he cleans up his sprawling company in the coming years – and then will be able to increase it again.
“A company like ours should be delivering 20 percent return on capital through the cycle,” Cutifani said on Friday. “We haven’t put a time on that, but we believe it is doable.”
The coal miner turned chief started a review of assets a year ago after joining London-based Anglo, the world’s fifth-largest mining company. He has set a goal of improving Anglo’s return on capital to at least 15 percent by 2016 from about 8 percent in June, and he will consider disposing of any asset that pulls down the average.
Of 69 assets, 31 were delivering just 2 percent of earnings before interest and taxes, Cutifani said. – Bloomberg