AUSENCO PLUMMETS ON PROFIT WARNING

Written on the 25 July 2013

AUSENCO PLUMMETS ON PROFIT WARNING

AUSENCO (ASX:AAX) shares have plummeted on a first half profit warning delivered by the mining services company today, which details the extraordinary $5 million cost of its redundancy program.

AAX shares were down 30.7 per cent today at $1.490 per unit, a huge drop from the $4.08 high achieved earlier this year.

The cost of the restructure will weight on the second quarter result, but it is expected to save $13 million in overhead costs in the second half of 2013 and between $20 million and $25 million annually from 2014.

The company says contract specific issues and a softer market will hurt the bottom line in the first half.

Unaudited first half 2013 performance is expected to deliver revenues of $255 million, underlying EBITDA between $15 and $16 million and underlying net profit after tax between $6 and $7 million.

Ausenco expects full year revenue to be between $564 million and $661 million and net profit after tax between $29 million and $41 million.

“Based on the lower first half performance and current lower business activity levels expected for the remainder of this year, the 2013 full year results will be below the current market consensus,” says the company.


Latest News

OROTON GOES CLICKS AND BRICKS AS PROFITS SLIDE

TWO former Aussie lawyers have turned their passion for fashion into a $15 million dollar international business six ...

MANTRA'S SHARE PRICE SURGE INDICATES 'SUITORS ARE CIRCLING' THE HOTEL GROUP

THE rumour mill surrounding a high-level takeover of Mantra Group (ASX: MTR) is in full production with its shares su...

MELBOURNE CBD GEMS SELL FOR $17 MILLION, MARKING A NEW PROPERTY HOTSPOT

LITTLE Lonsdale Street in the heart of Melbourne's CBD has become a favourite for investors in 2017, following th...

CAN GOOGLE RECOVER FROM GLOBAL CONTROVERSY OVER ITS PROGRAMMATIC ADVERTISING SYSTEM?

IT'S the story that has rocked the world of advertising. The lucrative Google (NASDAQ: GOOGL) advertising system ...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter