Downer EDI shares are tumbling after announcing a profit slide

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Downer EDI’s profit slipped by 4.4% to $94.7 million for the half year to December on the back of weakening work servicing the mining industry.

The result is slightly ahead of market expectations of $95 million.

Total revenue in the six months decreased by 8.8%, or $345.1 million, to $3.6 billion.

The engineering group maintained its guidance of a full year profit of between $210 million compared to $216 million last financial year.

CEO Grant Fenn says the company is operating in a difficult environment.

“Mining based construction and services markets remain subdued,” Mr Fenn said. “Our mining related consultancy businesses were hit particularly hard and experienced financial losses. We continue to respond to the tough market conditions by working closely with our customers to drive productivity and reduce costs.”

The company increased its fully franked interim dividend one cent to 12 cents per share.

It’s shares dropped more than 5% in early trade to $4.25.

The full set of numbers:

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