Engineering company WDS is getting smashed on the ASX today, down more than 66% a short time ago.
The mining construction and maintenance company today revealed it had revised its FY15 net profit after tax to between $1 million and $3 million.
WDS will shut its Sydney office in December, relocating administration activities to Brisbane and its chief executive Terry Chapman will step down.
Chapman has agreed to stay on as CEO until a suitable replacement is found.
WDS is conducting a review of its strategy and operations which will include further cost reductions but the company has had a tough year so far with the drop off of mining investment in Australia.
Adding to the revision was an employee fatality on September 15 at an LNG project in Queensland and a lost bid for works on a major CSG project, which forced the company to revise its expected earnings for this financial year. Both incidents impacted its energy division to the tune of about $9 million.
WDS’ mining division has also contributed to the revised profit numbers with poor productivity at its Eagle Downs project which started in February weighing on revenue and margins.
“A range of measures has been adopted to increase productivity and improve production rates,” the company said.
“It is now necessary to recognise the cumulative financial effects of this performance in the current year which will have a profit impact of $4 million on the Group’s results for FY15.”
Here’s the chart which shows the contractor’s shares tanking today.
There’s more here.