Earlier this month, we noted how falling mining equipment sales could be a harbinger of a sharper than expected reduction in mining capex. Then last week, mining services contractors, Coffey, UGL and Worley Parsons, cut their earnings guidance for 2013 and announced plans to cut jobs amid a raft of project delays and cancellations in the mining industry.
Today, construction and engineering company, Transfield Services, has announced a profit downgrade and confirmed that it will cut 113 jobs due to the slow down in the mining industry and cost cutting across all sectors. From the AFR:
“Ongoing uncertainty in commodity markets is resulting in the delay to, and deferment of, a range of resources and infrastructure projects,” Transfield said in a statement on Tuesday.
“More immediately, scope reductions and cancellations of works across the operations and maintenance sector are impacting earnings in the short term.”
As a result, the company now expects a net profit of between $62 million and $65 million, down from its previous forecast range of $85 million to $90 million, in the year to June 30…
Transfield has brought forward more cost reductions, which includes 113 job cuts.
Transfield cut 270 staff in the four months to December 31 last year.