Transfield Trims Profit Forecast 31%, Cuts 113 Jobs on SlowdownDavid Stringer
Transfield Services Ltd., an Australian engineering and maintenance company, trimmed its full-year profit forecast by almost a third and cut 113 jobs as the mining boom slows and customers delay projects.
Net profit after tax and before amortization and one-time items may be A$62 million ($60.85 million) to A$65 million in the 12 months to June 30, the Sydney-based company said today in a statement. That compares with its previous estimate of A$85 million to A$90 million and 2012 pre-amortization profit of A$106 million.
A slowdown is continuing in the mining and process industries and customers are “showing increasing cost and capital discipline,” Chief Executive Officer Graeme Hunt said today in a presentation to investors.
UGL Ltd., an Australian infrastructure and engineering contractor, tumbled the most in five years in Sydney trading on May 15 after it also downgraded its profit forecast as customers cut spending and halt major projects. BHP Billiton Ltd., the world’s largest mining company, and Vale SA are among companies deferring projects as commodity prices fall and costs rise.