18.11.2015

Mills loses CFO

Brazilian rental company and scaffold contractor Mills has announced the immediate departure of chief financial officer Frederico Átila Silva Neves.

Chief executive Sérgio Kariya has taken over his roles as administrative financial officer and investor relations officer on a temporary basis, in addition to his current duties.

The statement from the company does not give any reasons for the sudden departure and simply stated: “The company thanks Mr. Frederico Átila Silva Neves for the dedication and contribution to the company for the period he performed his duties in the company”.

Silva Neves joined Mills in 1979 as chief adminstrative officer, was chief financial officer from 1999, adding the role of investor relations officer in 2010.

Vertikal Comment

All does not seem well at Mills, there have been a number of senior departures and currently the executive board appears to be made up of the chief executive and two other directors without specific title. The bylaws of the company require between four and 11 executive directors, including chief executive and chief financial officer.

The company invested heavily in the powered access and telehandler market , providing a massive boost to the overall market and giving it a dominant market share, however as the economy slowed, it became clear that the the access rental market was over supplied and both rates and utilisation have plummeted.

Mills has taken on a good deal of debt to fuel the massive expansion as well as adding locations and staff at a breakneck pace. It could struggle for some time, unless there is a rapid turnaround in the Brazilian economy and raw material prices. The senior management changes will also not help.