Vale Shares Tumble After CFO Martins Replaced: Rio Mover
Vale SA (VALE3), the world’s second-biggest mining company, declined the most since October after naming Luciano Siani as chief financial officer in the fifth replacement of a top executive in eight months.
Vale dropped 4.7 percent to close at 35.15 reais in Sao Paulo, the most since Oct. 17. The Bovespa index slipped 0.8 percent. The stock has fallen 24 percent in the past year, compared with a 12 percent drop in the benchmark Bovespa index.
Siani, formerly global director for strategic planning, replaces Tito Martins, who is leaving the company, Rio de Janeiro-based Vale said in a statement late yesterday. Grupo Votorantim, a Brazilian producer of raw materials from pulp to cement, said today it hired Martins as the new head for its metals unit.
Martins’ departure “comes as a surprise to us, but we expect no shift in direction of Vale,” Barclays Plc analysts led by Leonardo Correa in Sao Paulo said in a note to clients today. “We see no shift in strategic focus, and expect investors to take the transition in a neutral manner.”
Chief Executive Officer Murilo Ferreira reshuffled management in November, substituting three executive directors. Martins, who was executive director of base metals, replaced Guilherme Cavalcanti as CFO. In May, Vale named Roger Downey head of its fertilizers and coal business, replacing Eduardo Bartolomeo.
Siani, who joined Vale in 2008, is a former consultant for McKinsey & Co. and was an executive for 12 years at Brazil’s state-controlled development bank, known as BNDES, the company said in yesterday’s statement. He studied mechanical engineering at Rio’s PUC University and business at New York University’s Stern School of Business, Vale said.
Vale will post second-quarter per-share profit of 74.4 cents excluding some items, according to the average of 11 analysts’ estimates compiled by Bloomberg. The company is scheduled to release the report tomorrow after markets close. Profit is projected to fall from $1.22 per share a year earlier.
Martins will replace Joao Bosco as CEO of Votorantim Metais starting in October, the company said today. Votorantim said it hired Matins to speed up growth in its aluminum, nickel and zinc projects.
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