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 affected by the slowdown in the mining sector, as the demand for locomotives has dropped. This has impacted their operations, and the company acknowledges that it will take some time to adjust to these changes.
Downer EDI's rail business is significantly impacted by the slowdown in the mining sector, as the demand for locomotives has dropped. This has affected their operations and will take some time to adjust.
Downer EDI expects to deliver a flat underlying net profit for the 2014 financial year, with earnings likely to be around $215 million, slightly up from last year's $205 million.
Downer EDI expects to deliver a flat underlying net profit for the 2014 financial year, with earnings likely to be around $215 million, slightly up from last year's $205 million.
Downer EDI supplies and maintains passenger and freight train rolling stock in Australia, playing a crucial role in supporting the country's rail infrastructure.
Downer EDI supplies and maintains passenger and freight train rolling stock in Australia, providing 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. The 78th train is due for delivery in the middle of the 2014 calendar year.
Downer EDI has made significant progress on the NSW Waratah train project, having delivered 59 passenger trains so far, with the 78th train due for delivery in the middle of the 2014 calendar year.
Downer EDI plans to transform its rail business by capitalizing on the significant market for rail services, particularly as state governments and private operators seek to improve the efficiency of their operations and networks.
Downer EDI believes there is a significant market for its rail services as state governments and private operators aim to improve the efficiency of their operations and networks.
The NSW Waratah train project is significant for Downer EDI as it involves delivering 78 eight-car trains for Sydney's rail network, showcasing the company's capability in large-scale rail projects.
Under the NSW Waratah train project, Downer EDI is delivering 78 eight-car trains for Sydney's rail network.
Downer EDI's locomotive business is facing challenges due to a significant drop-off in mining demand, which has affected their operations and requires time to adjust.
The transformation of Downer EDI's rail business is challenged by the significant drop-off in mining demand, which requires time to adjust and adapt to the changing market conditions.
Downer EDI believes there is a significant market for its rail services as state governments and private operators are looking to improve the efficiency of their operations and networks, creating opportunities for the company's offerings.
The final train in the NSW Waratah project is expected to be delivered in the middle of the 2014 calendar year.
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