Transfield swings to FY loss

Engineering firm weighed down by impairment charges, expects net profit of between $65m-$70m in fiscal 2014.

Transfield Services (TSE) expects the cost reductions it commenced in fiscal 2013 to contribute to a net profit of between $65 million and $70 million in the year ahead, after swinging to a steep loss on the full-year on impairment charges.

In the year to June 30, Transfield posted a loss of $249.9 million, a 395% on the $84.8 million profit recorded in 2012.

The group said the result was weighed by impairment charges of $295.5 million post-tax and non-controlling interests.

Full-year underlying net profit came in at $62.5 million, at the lower end of its forecast for between $62 million and $65 million.

In the same period revenue was $3.45 billion, a 10% increase on the $3.14 billion recorded in the previous year.

The group declined to pay a final dividend, after paying an unfranked interim dividend of three cents.

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