Downer EDI Limited

By Intelligent Investor · 2 Sep 2004

By Intelligent Investor ·
2 Sep 2004

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Downer EDI Limited - DOW

Current price

$4.77 at 16:40 (24 April 2024)

Price at review

$3.77 at (02 September 2004)

All Prices are in AUD ($)

Engineering and mining contractor Downer EDI has been making hay while the sun shines. Net profit rose 22% to $81.5m and management’s commentary and outlook were gushing. The result equated to earnings per share of 29.6 cents and a 9.6-cent final dividend was declared along with a two-cent special, both 50%-franked. Management, buoyed by the improved result, now feels it ‘must deliver value to you as shareholders through benefits from moving up the value chain’. Apart from the poor English, one marvels at how companies like Flight Centre and Harvey Norman became so successful without ‘moving up the value chain’. Downer EDI shares are up 14% since issue 149/Apr 04 (Sell—$3.31) and our view is unchanged. SELL.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.

Downer EDI Limited

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Downer EDI Limited

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