Engineering group Downer EDI’s share price has fallen after the company blamed a mining downturn for a four per cent slide in first half profit.
The mining equipment and rail manufacturer insists it will meet its full year target but says it will focus on reducing costs.
“Mining based construction and services markets remain subdued,” the company’s chief executive Grant Fenn said on Thursday.
“Our mining related consultancy businesses were hit particularly hard and experienced financial losses.”
Downer made a profit of $94.7 million for the six months to December 31, down 4.4 per cent from $99.1 million compared with the corresponding time in 2013.
But it reaffirmed its guidance for a full year profit of about $210 million, compared to $216 million in 2013/14.
“We continue to respond to the tough market conditions by working closely with our customers to drive productivity and reduce costs,” Mr Fenn said.
- Net profit of $94.7m, down 4.4 pct from $99.1m
- Revenue of $3.4b, down 10.2 pct from $3.8b
- Interim dividend of 12 cents per share, up from 11 cents