UGL Plunges Most in Five Years on Profit Forecast: Sydney Mover

UGL Ltd. (UGL), the Australian infrastructure and engineering contractor, tumbled the most in five years after it downgraded its profit forecast as customers cut spending and halt major projects.

UGL fell as much as 16 percent in Sydney trading to A$8.01, the biggest drop since Feb. 11, 2008, and at 12:47 p.m. was at A$8.125. Australia’s benchmark S&P/ASX 200 Index declined 0.8 percent.

Full year adjusted net income for 2013 is estimated at A$90 million ($89 million) to $100 million, the Sydney-based company said today in a statement. In February, its forecast was A$150 million to A$160 million.

“Ongoing uncertainty and volatility in commodity markets have driven a continued slowdown of capital investment in the resources and infrastructure sectors,” Richard Leupen, chief executive officer, said in the statement.

BHP Billiton Ltd., the world’s largest mining company, Glencore Xstrata Plc and Vale SA are among those deferring projects and cutting back on spending in response to falling commodity prices and rising costs. BHP said yesterday it planned to cut capital spending in fiscal 2014 by 18 percent.

To contact the reporter on this story: David Stringer in Melbourne at dstringer3@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.