CARDNO DOWNGRADES PROFIT AFTER $200M HIT

Written on the 20 May 2015

CARDNO DOWNGRADES PROFIT AFTER $200M HIT

CARDNO Limited (ASX:CDD) has downgraded its full year profit forecast, following a $200 million hit as the company devalues its US operations.

The infrastructure and environmental services consultancy has forecast its full year operating net profit after tax to be in the range of $48 million and $51 million.

The guidance falls short of its FY14 result of $78.1 million.

The non-cash impairment charge of $200 million follows Cardno's reassessment of investment in the US and Ecuador. The writedown will not impact its existing debt covenants.

Acting CEO and group CFO Graham Yerbury (pictured)says a number of factors contributed to the company's underperformance, particularly in the second half.

"The past 12 months have been very challenging with the difficult market conditions requiring significant action to improve overall business performance and outlook," Yerbury says.

"We are evaluating all components of our business in the Americas region with a view to improving overall profitability and positioning the business for a return to organic growth."

The company reported continued revenue challenges as a result of the downturn in the Australian mining and oil and gas sectors.

Harsh weather conditions impacted the US business, as well as increased competition in the market and a global slowdown in the demand for oil and gas.

"Despite these near term challenges, we continue to grow our backlog in the Americas and remain optimistic about the performance of the business in the coming year," Yerbury says.

"While it is difficult to pick the bottom of the market we believe that the outlook for our Australian business in the coming year is broadly positive and that we are well positioned to take advantage of any improvement in the economy."

Cardno will release its full year financial statement on August 18.


Latest News

AUSTRALIA READY TO DISRUPT GLOBAL CARBON FIBRE MANUFACTURING

AUSTRALIA for the first time has the capacity to produce carbon fibre from scratch and at scale, following the launch...

HONG KONG FUND INVESTS $212.8 MILLION IN G8 EDUCATION

G8 EDUCATION (ASX: GEM) has secured $212.8 million from Hong Kong-based CFCG Investment Partners to pay down debt and...

MERGER DELIVERS THE FINANCIAL GOODS FOR TERRY WHITE

TERRY White Group has posted a solid half-year net profit of $1.3 million amid a period of major transformation fo...

BLUE SKY APPOINTS TWO NEW INDEPENDENT DIRECTORS

BLUE Sky Alternative Investments (ASX: BLA) has appointed two new independent, non-executive directors to its board: ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter