WorleyParsons Cuts Profit Forecast on U.S. Energy
Jan. 13 (Bloomberg) -- WorleyParsons Ltd., Australia’s biggest engineering company, cut its profit forecast by as much as 16 percent after a weaker than anticipated performance by its U.S. energy unit. Its shares fell by the most in 15 months.
Net profit after tax may be between A$280 million ($258 million) and A$320 million in the year ending June 30, the Sydney-based company said today in a statement. That compares with its October forecast of A$320 million to A$335 million.
WorleyParsons fell as much as 12 percent to A$25.71, its biggest decline since Oct. 23, 2008. It traded at A$26.35 at 10:27 a.m. Sydney time on the Australian stock exchange.
“The market for our services in the U.S. domestic refining and petrochemicals industries has weakened significantly,” the company said. Decreased demand and increased legislative uncertainty in the U.S. about the treatment of carbon has also lowered earnings, it said.
WorleyParsons had net income of A$390.5 million last year, with its hydrocarbon unit accounting for 77 percent of sales.
To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net
Last Updated: January 12, 2010 18:31 EST
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