PERTH, Australia, June 18 /PRNewswire-FirstCall/ --
Record of interview:
corporatefile.com.au
Orbital Corporation Limited recently appointed you as Orbital's new CEO
and MD effective 21 June, 2008. What experience and expertise do you bring to
the role at Orbital, whose core activities are technology development and
commercialisation?
CEO Terry Stinson
I have technology development and commercialisation experience from
previous roles with Mercury Marine, joint venture activities with companies in
Japan and China, and joint venture activities with automotive manufacturers.
With relation to Orbital, the closest alignment of experience is from forming
and leading Meteor in Perth, which became Synerject.
In my experience, many innovative products struggle as they move from R&D
to commercialisation and many products with great potential fail through this
transition. My successes have been in taking good ideas and getting them into
profitable production. I plan to use the knowledge acquired from my experience
to make sure that new Orbital ventures are successful and profitable and
ensure a good return to shareholders.
My technology development and commercialisation experience is complimented
by my manufacturing experience. If you know how things are made, you have a
better chance of making sure that what you're designing can be built in
production. I've also retained customer and industry contacts from the fuel
systems business, which we can use as we identify opportunities to expand.
I have a lot of recognition and admiration for what Rod Houston has
accomplished. What I bring to the business are traditional CEO skills and a
clear focus on creating shareholder wealth. My experience lies in creating
companies, company turn-arounds, and getting companies on the right path for
growth and profits.
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Without talking specifics about your intended strategy, what do you think
needs to change at Orbital? Might the structure of Orbital's earnings change
over the next three to five years?
CEO Terry Stinson
Orbital needs to grow and this will require change. The level of change
will depend on where we take Orbital in the future. My plan over the next
three to four months is to develop a strategy that will facilitate much
stronger profitable growth and to secure future shareholder returns. The
strategy we develop as a team will focus on customer needs and work to provide
products and services that fill gaps in the market. This new strategy will
require diversification and that will require additional investment and time.
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Orbital recently announced the $1.6 million acquisition of Boral
Alternative Fuel Systems (BAFS). What is the strategic rationale for this
acquisition and is it indicative of where the company might head?
CEO Terry Stinson
The strategic rationale is to fill a gap in the market that fits with
Orbital's core competencies, which are developing engines, engine management
systems and fuel systems for cleaner engines. We're now well placed
strategically to provide a product to the market that can bring real cost
savings and reduce greenhouse gas emissions. Australian car producers and
consumers are looking for ways of reducing fuel costs and LPG is one of the
best near term solutions available. Utilising the strengths of Orbital and our
new partner Vialle, we can deliver the next generation LPG fuel system for
both the car producers and the aftermarket sector.
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BAFS is currently generating annual revenue of approximately $6 million
and is expected to be earnings per share accretive for Orbital. Can this
acquisition have a genuine impact on shareholder value?
CEO Terry Stinson
The acquisition of BAFS is the first step in an expansion into the
alternative fuels market. It provides a springboard into the original
equipment manufacturers (OEM's) with Ford as an existing customer and the
opportunity to expand into the LPG aftermarket sector which is a large
opportunity in Australia.
With the BAFS acquisition, to be renamed Orbital Gas Products, we can
create new systems and a series of gas products that can be applied to a broad
range of vehicles.
Once we establish ourselves in the Australian market, we can take the new
products and expand into more international markets. We believe this expansion
through our new business will have a positive impact on shareholder value.
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What are your priorities at Orbital and is a change in strategic direction
likely in the near term?
CEO Terry Stinson
My first priority as a new CEO is to get involved and learn about
Orbital's customers, what programs we have underway, assess the staff and
their potential, and whether we're organised correctly to be able to deliver
on shareholder expectations.
I'm going to build on Rod's strategy of looking outside our core
businesses and expanding Orbital's business scope. I also want to stabilise
the engineering business, the license and royalty segment, and the revenues
will continue to follow product sales.
My goal is to take what is here as a foundation and use that to reinvent
Orbital at the periphery as a larger and more profitable company.
In terms of product, we want to focus on energy savings and positive
environmental impact, not just with engine and power train, but to look at
expanding into other markets while still using our skill set.
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Thank you Terry.
For more information about Orbital, please visit www.orbitalcorp.com.au or
call Terry Stinson (+61 8) 9441 2462
For previous Open Briefings by Orbital, or to receive future Open
Briefings by e-mail, please visit www.corporatefile.com.au
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Forward Looking Statements
This release includes forward-looking statements that involve risks and
uncertainties. These forward-looking statements are based upon management's
expectations and beliefs concerning future events. Forward-looking statements
are necessarily subject to risks, uncertainties and other factors, many of
which are outside the control of the Company, that could cause actual results
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SOURCE Orbital Corporation Limited
Terry Stinson, Orbital Corporation Limited, (+61 8) 9441 2462
