Suspended Forge tips power push problems

Forge Group is experiencing deepening financial woes due to its push into the power sector, which has led to issues with two power station contracts. These problems are expected to significantly impact the company's earnings guidance and financial outlook for the year ending June 30, 2014.

Forge Group has suspended its sharemarket trading as it works through financial difficulties related to its power sector contracts. The suspension has extended into its second week as the company discusses necessary steps with its financiers and advisers to address these issues.

The financial issues identified by Forge Group are likely to materially affect its earnings guidance and outlook for the financial year ending June 30, 2014. This suggests that the company's expected earnings may be lower than previously anticipated.

Forge Group is in discussions with its financiers and advisers to determine the necessary steps to resolve the problems with its power station contracts. This may include going to the market to raise additional cash.

Forge Group informed its shareholders in October that it would provide an update on its earnings outlook for fiscal 2014 during the current month.

In the year leading up to June, Forge Group earned a net profit of $63 million on revenue of $1.1 billion.

The issues with the power station contracts have led to a suspension of Forge Group's sharemarket trading as the company works to resolve these financial challenges.

Yes, Forge Group is expected to go to the market to raise cash as part of its efforts to address the financial problems stemming from its power sector contracts.