Walter cuts profit forecast

Walter now expects net profit after tax of $A21-23 million, down from the $27 million announced a month ago. EBITDA is forecast at $55-60 million.The slide was attributed to changes in customers’ short-term work programs in coal seam gas developments. Walter expects work in this sector to pick up again in the first quarter of the 2010 financial year.The contractor also anticipates a cost of $1.7 million for a carry-over contract struck by one of its acquired companies.The company said, contrary to the reductions in the CSG sector, the mining division was exceeding budget, driven by value-add services to clients and diversification.Walter was trading down 13.6% mid-morning today at 95 cents.

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