Macmahon Holdings profit slump ‘unacceptable’

MACMAHON Holdings said today it came within a whisker of posting a full-year loss, with its net profits dropping 97.2 per cent to $1 million due to writedowns and the impact of Australia’s wet season. In annual results, the mining contractor said that earnings of just 0.1 cents per share were “an unacceptable outcome”, and blamed a disappointing first-half result.But Macmahon added that it was “well placed to make a strong profit recovery in 2012″.

The dividend, which totalled 3c in the 2010 financial year, was cancelled as a result of the weak result.

The group said its forward order book was at a record level of $2.8 billion and $1.25bn of that total was booked for the 2012 financial year, while net cash came to $39.5n and underlying profits also came to $39n.

Separately, the company announced that it had been awarded a $300m contract to build a rail spur for Fortescue Metals Group’s Solomon iron ore project.

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