UPDATE 2.20pm: Shares in Kerry Stokes' Seven Group Holdings have slumped 7.5 per cent after the company warned investors that earnings would fall by up to 40 per cent this year.
Managing director Don Voelte said Seven Group's machinery supplies businesses were expected to return to 2011 levels after a "bubble" period of strong growth.
Mr Voelte said underlying earnings before interest and tax were expected were to be down by 30 to 40 per cent this financial year.
"What we've seen in the last two to two and a half years is a bubble of some type," he said.
"We think that we're just calming back down towards the overall growth rate of the past decade. We're predicting somewhere around FY11 (levels) or a little bit better."
The company's shares closed down 58 cents, or 7.53 per cent, at $7.12, after touching an earlier low of $6.85.
Seven Group posted a 16 per cent surge in underlying profit to $399 million for 2012-13. The result was achieved on the back of a 6.4 per cent growth in revenue to $4.7 billion.
Reported statutory profit was up 177 per cent to $489 million. The figure included funds from the $491 million sale of the company's interest in Consolidated Media Holdings, sale of part of the Kings Square project and a reversal of a previous impairment of the carrying value of the company's investment in Seven West Media.
Seven Group will issue a final fully franked dividend of 20 cents a share, taking its full-year dividend to 40 cents, up 5 per cent on the previous year.
Seven Group owns a 35 per cent stake in Seven West Media along with industrial companies WesTrac and Coates Hire.
Mr Voelte said the group delivered a record result underpinned by an exceptional performance in the WesTrac business in the first half.
"The second half, however, was very challenging across all our industrial services businesses as a result of the downturn in the mining market," he said. The struggling coal sector in NSW was the biggest drag on earnings.
Mr Voelte said the Seven West Media investment had achieved a strong result also in a challenging market.
"Our broader portfolio of property and other strategic investments also delivered during the year and there will be more focus on these as we move forward.
"Our balance sheet is very strong with over $1 billion of debt reduction during the year and we are well placed to take advantage of opportunities to broaden and diversify our portfolio."
Seven said it would focus on strengthening and managing its businesses, reducing costs and enhancing performance in WesTrac's businesses in Australia and China.
"We are reviewing our capital expenditure and costs, in order to meet the changing market demands for mining and industrial services products."For Seven's investment in media, the company said it was anticipating overall advertising markets to remain subdued with low single digit growth in television, and a continuation of the current trend experienced in newspapers. However the rate of decline in magazines was expected to lessen.