More mining canaries croak

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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.

David Llewellyn-Smith
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Comments

  1. innocent bystanderMEMBER

    I think you should change your photo caption to 1 canary, 2 canaries, 3 canaries … I nearly missed this article thinking I had read it before 🙂

    • ha yes i think a canary stamp withs the eyes as crosses is now the go…

      Linking in with the wages growth (lack of) story.