GR Engineering MD Joe Ricciardo. Picture: Steve Ferrier/The West Australian.
GR Engineering MD Joe Ricciardo. Picture: Steve Ferrier/The West Australian.

UPDATE 1.20pm: GR Engineering today became the latest mining contractor to announce an earnings downgrade, citing project delays and deferrals.

The company also announced a $2.1 million hit from legal costs and a write-off associated with its now resolved dispute with Gold Ridge Mining.

"The company forecasts that full-year 2013 revenue will be in the order of $140 million to $145 million, compared with revenue of $152.1 million in full-year 2012," GR said in a statement.

"Profit before tax is now forecast at approximately $13 million to $13.5 million compared to $19.9 million in 2012."

GR said it expected to generate $50 million to $55 million in revenue in the first half and between $1.8 million and $2.1 million in profit before tax.

GR managing director Joe Ricciardo said like many other companies operating in the sector, high operating costs, delays in obtaining regulatory approvals, tighter debt and equity markets and commodity price uncertainty had resulted in a number of projects being either delayed or deferred.

"On a positive note, the level of study and engineering activity remains robust and we expect the results for our second half of 2013 to be far stronger than those for the first half," he said.

"Together with work being undertaken on both EPC and EPCM style engagements, the company's current workload supports our existing manpower levels.

"Our primary objective is the conversion of completed studies into EPC and EPCM contract awards."

Mr Ricciardo said the company had $30 million in cash reserves and virtually no debt.

GR shares closed down 10.5 cents, or 11.23 per cent, at 83 cents after the stock slumped to a 52-week low of 80 cents in intraday trade.

The West Australian

Popular videos

Compare & Save

Our Picks

Compare & Save

Follow Us

More from The West