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

VITA GROUP POSTS STEADY RESULTS DESPITE ROUGH YEAR

IT'S no secret Vita Group (ASX: VTG) has had a testing year, however the company has still managed to deliver ...

KOGAN BREAKS FORECASTS IN ITS FIRST YEAR OF PUBLICLY LISTED TRADE

RAISING the bar high in its first year as a publicly listed company, Kogan.com (ASX: KGN) has smashed its forecast...

CAMPLIFY MOTORS INTO THE UK MARKET

CARAVAN hire and RV sharing community Camplify has made its move in the European market, establishing its first op...

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter