Mining slump hits Monadelphous revenue

Engineering giant Monadelphous says revenue is still falling as miners cut costs and the number of development projects shrinks.

Revenue is expected to drop by around 15 to 20 per cent in the first half of the current financial year, compared to the previous year’s $1.29 billion first six months, managing director Rob Velletri said.

Full year sales revenue will depend on new contract awards and project timing, he said.

“Market conditions in mining and minerals continue to be challenging as customers drive down capital and operating costs,” Mr Velletri told the company’s annual general meeting.

Monadelphous suffered an 11 per cent fall in sales revenue in the 2013/14 year, after two years of growth of more than 80 per cent.

Its annual profit dropped six per cent to $146.5 million

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