Fading investment and dwindling projects in the resources sector has started to bite on the business of mining services companies.
Engineering group Bradken’s share price slumped after it posted a 64% fall in underlying profit to $13.8 million for the first half of the financial year.
The company decided against issuing a dividend.
Sales revenue was down 12% to $495.4 million. Statutory Net Profit After Tax was significantly impacted by a number of one-off charges relating to a restructure. This meant a Net Loss After Tax of $92.6 million.
Volatility in commodity and mineral markets persisted in the first half, the company said.
Managing Director Brian Hodges says he expects a slight increase in overall sales revenue in the second half.
The company’s restructuring is on target with $21 million of cash cuts for 2015, growing to $33 million in 2016.
Last month two private equity firms pulled out of a $900 million takeover bid for Bradken because of volatility in commodity and financial markets.
Braken’s shares are trading at $2.40, almost 24% down.