boom to restructure

The restructure will comprise the following:
• the crane fleet will be reduced from 24 to 6. One crane will be redeployed to Western
Australia and the remaining 17 cranes will be sold and are expected to realise proceeds in
excess of $3 million. The cranes being sold are either small capacity cranes or cranes at
the end of their useful lives that no longer fit with Boom’s fleet management plans;
• the remaining crane fleet and personnel will be merged with the Tower Crane Division
based at Laverton; and
• a consolidation of Boom properties across Victoria, reducing the property numbers by two.
The restructure will result in a reduction of 31 personnel in the workforce. Affected personnel
will be supplied with individual career transition support in areas such as career counselling,
job search, financial planning and retirement planning.
The redundancy costs associated with the restructure are expected to be $1.1 million. On an
annualised basis, the restructure is expected to improve the result of this business unit from
an annualised EBIT loss of $1.6m to an annualised EBIT profit of $0.6m.
Boom’s mobile crane operation in Morwell is unaffected by the restructure.
The restructured business will maintain the existing contracted customer base and proactively
target project work.