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Macmahon profit crash

MACMAHON Holdings has posted an "unacceptable" profit of $1 million, due to a write-down on a rail contract. Net profit dropped 97 per cent for the 12 months to June 30 from $37.9 million a year earlier, the Perth-based mining services and construction company said in a statement yesterday.

MACMAHON Holdings has posted an "unacceptable" profit of $1 million, due to a write-down on a rail contract. Net profit dropped 97 per cent for the 12 months to June 30 from $37.9 million a year earlier, the Perth-based mining services and construction company said in a statement yesterday.

The company blamed the weak result on a disappointing first-half, compounded by severe wet weather and the write-down of the $500 million RGP5 Rail North contract for BHP Billiton in the Pilbara region.

Chief executive Nick Bowen said the company's outlook was positive and it had secured $1.25 billion of revenue for 2012.

Revenue rose 22 per cent to $1.09 billion. The company declared no final dividend, down from 3? in 2009-10. Its shares gained 2?, or 3.54 per cent, to 58.5?.


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