Mining services contractor, UGL, has joined the growing list of engineering services firms warning on capex cuts:
“Ongoing uncertainty and volatility in the commodity markets have driven a continued slowdown of capital investment in the resources and infrastructure sectors with further delays of major projects impacting revenues in the engineering business,” said chief executive Richard Leupen.
“Additionally, the cost management programmes of the major miners have led to scope reductions and cancellations across UGL’s operations and maintenance business.”
UGL slashed its profit profit guidance from $150-160 to $90-$100 million. It’s share price has been crucified.