Downer EDI shares fell hard in early trade as the engineering group reported a 2.7% fall in full profit to $210.2 million and forecast more headwinds ahead.
The company, hit by the downturn in investment in the mining industry, has been switching its attention to non-resources industry infrastructure projects.
Total revenue decreased by 3.9%, or $304.5 million, to $7.4 billion. Of that mining revenue was down 19.7% to $1.6 billion.
However, revenue from infrastructure work increased 4.6% to $5 billion, as these charts show:
The company has also been winning big wind farm projects, including a $130 million deal to build at Ararat northeast of Melbourne.
“We expect the current low levels of mining related capital expenditure to continue through 2016 and customers across the board to focus on costs and efficiency as the broader economy feels the impact of low commodity prices,” the company said.
“In this environment, it is difficult to predict the flow of uncontracted revenue which is slightly higher than at this time last year.”
A fully franked final dividend of 12 cents a share was declared.
The company says it’s aiming for a net profit of about $190 million in the current financial year.
Its share price was down more than 9% to $4.19.