UGL Plunges Most in Five Years on Profit Forecast: Sydney MoverDavid Stringer
UGL Ltd., 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 closed 17 percent lower in Sydney at A$7.94, the biggest drop since Feb. 11, 2008. Australia’s benchmark S&P/ASX 200 Index declined 0.6 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.