Slowdown in mining hits Downer's rail
The engineering and maintenance company on Wednesday also said it still expects to deliver a flat underlying net profit in the 2014financial year.
Downer supplies and maintains passenger and freight train rolling stock in Australia.
"Our locomotive business has been affected significantly by the drop-off in mining demand," Downer EDI chief executive Grant Fenn told shareholders at the company's annual meeting.
"The transformation of our rail business will take some time. However, we believe there is a significant market for the rail services that we provide, particularly as state governments and private operators look to improve the efficiency of their operations and networks."
Downer said significant progress had been made on the NSW Waratah train project - under which it is delivering 78 eight-car trains for Sydney's rail network - over the past year.
Downer had delivered 59 passenger trains so far, and the 78th train was due for delivery in the middle of the 2014 calendar year.
Mr Fenn also repeated previous profit guidance earnings for the coming year were likely to be around $215 million.
This would be up slightly from last year's $205 million.
Frequently Asked Questions about this Article…
Downer EDI's rail business is significantly impacted by the slowdown in the mining sector, as the demand for locomotives has decreased. This has led to challenges in adjusting their operations to the current market conditions.
Downer EDI's rail business is significantly impacted by the slowdown in the mining sector, as the demand for locomotives has decreased. This has led to challenges in adjusting their operations to the current market conditions.
Downer EDI expects to deliver a flat underlying net profit in the 2014 financial year, maintaining stability despite the challenges posed by the mining sector slowdown.
Downer EDI expects to deliver a flat underlying net profit in the 2014 financial year, maintaining stability despite the challenges faced in the rail sector.
Downer EDI supplies and maintains passenger and freight train rolling stock in Australia, offering essential services to both state governments and private operators.
Downer EDI supplies and maintains passenger and freight train rolling stock in Australia, offering essential services to both state governments and private operators.
Downer EDI has made significant progress on the NSW Waratah train project, having delivered 59 passenger trains so far, with the 78th train expected to be delivered by mid-2014.
Downer EDI has made significant progress on the NSW Waratah train project, having delivered 59 out of 78 eight-car trains for Sydney's rail network, with the final train expected by mid-2014.
Downer EDI's earnings for the coming year are expected to be around $215 million, which is a slight increase from last year's $205 million.
Downer EDI's earnings for the coming year are expected to be around $215 million, which is a slight increase from the previous year's $205 million.
Downer EDI is focusing on transforming its rail business by capitalizing on the significant market for rail services, as state governments and private operators seek to improve the efficiency of their operations and networks.
Downer EDI plans to transform its rail business by capitalizing on the significant market for rail services, focusing on improving efficiency for state governments and private operators.
There is a significant market for Downer EDI's rail services because state governments and private operators are looking to enhance the efficiency of their rail operations and networks, creating demand for the services Downer provides.
Downer EDI believes there is a significant market for its rail services as state governments and private operators aim to enhance the efficiency of their operations and networks.
Downer EDI's locomotive business faces challenges due to the drop-off in mining demand, which has significantly affected their operations and requires time to adjust to the new market conditions.
Downer EDI faces challenges in its locomotive business due to the drop-off in mining demand, which has significantly affected their operations and necessitated a period of adjustment.
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