Cardno posts record FY profit

Infrastructure firm bucks raft of profit downgrades across mining industry.

Contractor Cardno (CDD) has bucked a raft of profit downgrades in the mining services industry, posting a record result for the year led by extra earnings from seven new mergers. 

Net profit rose 4.7% to $77.6 million, from $74.2 million in the previous year. 

Revenue grew 23.8% to $1.19 billion in the period, from $965.8 million, "largely due to the positive contributions of new merger partners".

Managing director Andrew Buckley said organic growth grew 1%, down from 7% at the half year. 

"After several years of delivering strong organic growth, lack of confidence in the Australian market place, a slower than expected US economy and reduced activity on the Gulf Oil Spill Project resulted in an organic growth decline), he said.

The group will pay a final fully-franked dividend of 18 cents per share, pushing its total payout to 36 cents, equal to last year. The final dividend is payable October 11. 

Commenting on the results, Cardno chairman John Marlay said it was the ninth consecutive year of record profit growth. 

Mr Buckley said the group was "cautiously optimistic about the potential offered by a recovering United States economy". 

"We are also aware that the Australian economy faces considerable challenges and Cardno is not immune to shocks and difficulties across our core markets" (see Inside the mining services disaster).